NEW YORK (AP) — Canadian drugmaker Valeant Pharmaceuticals International Inc. said Monday it will sell $1.75 billion in stock to help fund its acquisition of Bausch + Lomb.
Valeant did not say how many shares it plans to sell. The company said it plans to raise $1.75 billion before discounts, expenses, and other items. It will use the proceeds to help fund its $4.5 billion purchase of Bausch + Lomb, to cover fees and expenses related to the deal, and to repay or retire Bausch + Lomb's debt.
The underwriters of the offering will have the chance to buy additional shares to cover any overallotments. That could increase the number of shares sold by up to 15 percent, or about $260 million.
Valeant agreed to buy Bausch + Lomb in May in a major expansion of its ophthalmology business. It will pay $4.5 billion for the company and will spend another $4.2 billion to repay Bausch + Lomb's debt.
U.S.-traded shares of Valeant, which is based in Laval, Quebec, rose 62 cents to $84.82 Monday and lost 87 cents to $83.95 in aftermarket dealings.