On February 6, Bausch Health Companies, Inc. (the “Company” or “BHC”) issued a press release updating the market on strategic alternatives (the “Strategic Update”). In this Strategic Update, the Company disclosed that the sale process it had engaged in regarding a potential sale of Bausch + Lomb Corporation (“B+L”) did not lead to an offer that reflected B+L’s long–term value, and the BHC and B+L boards determined not to move forward with a sale at this time. The Company also disclosed that it will continue its efforts to work on various liability management alternatives, including raising new debt financing.

In this report, we provide our initial impressions on the Strategic Update and how the provisions of the various Bausch Health bonds could be implicated.