Valeant Pharmaceuticals International shares were up almost 2% pre-market Thursday after the Canadian drug maker said it will redeem the remaining $500 million aggregate principal amount of its outstanding 6.75% senior notes due 2018, using cash on hand, on Aug. 15, and will issue an irrevocable notice of redemption for the notes today.
The company said that the redemption will have reduced its debt by more than $4.8 billion since the end of Q1 of 2016. Additionally, the company said it will have no significant debt maturities, and no mandatory amortization requirements through 2019. “By redeeming these notes, we will be close to achieving our expectation of paying down $5 billion of debt from divestitures and free cash flow within 18 months of August 2016,” said Joseph C. Papa, CEO of Valeant. “We are confident we will not only meet, but also exceed our debt reduction commitment early.”