September 10, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Valeant Pharmaceuticals International (NYSE: VRX) said it plans to offer around $1 billion principal amount of senior unsecured notes, in conjunction with a merger agreement with Biovail Corp. (NYSE: BVF).

The offering is scheduled to launch on or about September 15. In addition, Valeant said it will begin the arrangement for new senior secured credit facilities of around $1.9 billion.

In connection with a definitive merger agreement under which Valeant and Biovail would combine, the notes and the new credit facilities are expected to be guaranteed by all material U.S. subsidiaries of Valeant, and at the effective time of such merger, Biovail and by all material subsidiaries of Biovail.

Valeant plans to use the net proceeds from the offering of the notes, together with borrowings under the new credit facilities, to, among other things, refinance Valeant's existing 7.625% and 8.375% senior unsecured notes, and to pay a one-time special cash dividend of $16.77 per share to each Valeant shareholder on the business day immediately prior to the closing of the merger.

California-based Valeant Pharmaceuticals is a specialty pharmaceutical company that develops, manufactures and markets a range of products primarily in the areas of neurology and dermatology.

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