Bausch Health: Can BHC Execute a Drop Down Transaction to Refinance BHC First Lien Bonds?

Bausch Health: Can BHC Execute a Drop Down Transaction to Refinance BHC First Lien Bonds?

Scott Josefsberg, J.D.: Head of U.S. High Yield Research

9 July 2026

Download the Full Report to gain insights on:

How Bausch Health could pursue an alternative drop down structure to address upcoming first lien bond maturities.
What covenant provisions may still provide refinancing flexibility despite exhausted Drop Down Debt capacity.
Why the interaction between NumberCo debt and legacy bonds matters for creditor positioning.
How collateral, guarantees, and structural subordination could change under a refinancing transaction.
Which legal and covenant hurdles investors should monitor when assessing execution risk.

Executive Summary

Bausch Health continues exploring refinancing alternatives for upcoming secured bond maturities. Covenant flexibility remains central to potential transaction structures.

The report evaluates a proposed alternative drop down arrangement. This structure could alter creditor positioning across entities.

Analysts examine covenant provisions governing debt incurrence and liens. However, transaction feasibility depends on multiple structural considerations.

Several debt documents provide pathways supporting refinancing flexibility. Therefore, outcomes depend on covenant interpretation and execution.

Investors should assess structural changes affecting collateral relationships. Relative priority could shift across different creditor groups.

Fill out the below form to view the full article:

Please note that we can only respond to valid business email addresses and the interview is already available to clients.

Recently Published

Research

All Covenant-Review Autos US CR Quarterly Q1 Basic LevFin-Insights Telecommunications May GMU Financials CreditSights-Research Utilities Case Studies show-home show-initiation page-home Municipals SLRs TMT Asset Management Resources Pharmaceuticals June GMU Energy Research Gaming/Leisure Webinar Related Resource Industrials Politics Media US Special Sits Outlook Consumer Tariffs Special Situations Euro Autos: Barbarians at the Gates Corporate Private Credit Aerospace/Defense U.S. Autos Expert Panel Covenants Bonds Real Estate EU Special Sits Outlook Strategy Post Petition Services July GMU ESG Chemicals Iran Asia in Focus 2H26 ESG-Home Emerging Markets Banks EM Outlook Outlooks-Home Transportation Construction Technology Insurance Asia in focus webinar Manufacturing EMEA CR Quarterly Q1