Bausch Health: Changes Afoot?
Eric Axon, CFA - Co-Head of High Yield, Head of Healthcare, CreditSights
Nick Williams - Senior Analyst, Special Situations, CreditSights
Patrick Cunniff - Analyst, Healthcare, CreditSights
21 August 2025
Insights into Bausch Health’s evolving capital structure, board and shareholder changes, and BLCO equity scenarios, including:
- Board and Shareholder Transitions at Bausch Health: Examine how recent changes may shape future corporate actions and strategic priorities.
- BLCO Equity Monetization Scenarios: Assess the significance of Bausch + Lomb equity and its potential monetization for the company’s financial outlook.
- Capital Structure Developments: Review recent refinancing activity and how new debt capacity could impact Bausch Health’s balance sheet.
- Creditor Recovery Outcomes: Analyze scenario-based recovery estimates for creditors, considering both monetization and status quo paths for BLCO equity.
- Market Signals and Strategic Considerations: Consider what shifts in bond prices and investor behavior may indicate about the company’s future direction.
Executive Summary
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We offer updated thoughts on BHC amid changes to the composition of its board and shareholder base. We focus on future liability management transactions as well as the fate of the unencumbered BLCO equity, specifically as it relates to potential monetization.
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We also update certain recovery assumptions as we frame the ever-evolving decision tree for creditors in the BHC story. Those updates reflect recent debt paydowns and BLCO’s higher share price as well as the potential for a near-term tap of the incremental debt basket.
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Our recovery model is available to clients upon request via the Ask an Analyst function.
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