Valeant Closes Sale Of INova Pharma To Pacific Equity Partners And Carlyle Group

(RTTNews) - Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) said that it has completed the sale of the iNova Pharmaceuticals business to a company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group for $930 million in cash.

Valeant noted that it will use net proceeds of about $920 million from the sale to repay term loan debt under its Senior Credit Facility.

Additionally, today the Company is utilizing cash from operations to repay $100 million of amounts outstanding under its revolving credit facility. Following the closure of the sale of the Obagi Medical Products business, which remains on track to close in 2017, Valeant expects it will exceed its August 2016 commitment to pay down $5 billion in debt from divestiture proceeds and free cash flow before February 2018.

The company estimates that the expected revenue and Adjusted EBITDA from the iNova business in the fourth quarter of 2017 would have been about $65 million and $35 million, respectively.