Aliso Viejo-based drug maker Valeant Pharmaceuticals said Thursday that it would offer $1 billion in bonds and is arranging $1.9 billion in credit as part of its pending $3.2 billion acquisition by Canada’s Biovail Corp.
The drug maker said in a release that it would use proceeds from the offer to refinance existing debt and to pay a one-time cash dividend of $16.8 per share to its shareholders.
Valeant makes neurology and dermatology drugs.
Once the deal is complete, Biovail shareholders are set to own 50.5% of the combined company, which will retain the Valeant name and Chief Executive J. Michael Pearson.
The company’s headquarters will move to the Toronto area from Aliso Viejo, where Valeant’s lease is expiring.
A Valeant spokeswoman said the drug maker expects to have a continuing presence in Orange County, although a local location hasn’t been determined yet.
Separately, Valeant and Biovail said in a Securities and Exchange Commission filing that the combined company now expects to cut 25% of their combined U.S. and Canadian workforce, up from a previous projection of 20%.
Together, the companies employ about 4,400 people.
