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Does Bausch Health (BHC) Extending Secured Debt to 2032 Clarify or Complicate Its Deleveraging Path?

Simply Wall St · 3d ago
  • In December 2025, Bausch Health Companies Inc. completed an exchange of certain 4.875% and 11.00% Senior Secured Notes due 2028 for US$1.60 billion of new 10.00% Senior Secured Notes due 2032 under its existing indenture.
  • This transaction consolidates Bausch Health’s secured borrowings into a larger, longer-dated 2032 note series, reshaping its debt profile and interest obligations.
  • Next, we’ll examine how extending US$1.60 billion of secured debt to 2032 feeds into Bausch Health’s existing investment narrative.

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Bausch Health Companies Investment Narrative Recap

To own Bausch Health today, you need to accept a story built around a highly leveraged pharma business that is trying to manage refinancing risk while facing concentrated exposure to Xifaxan and drug pricing pressure. The December 2025 exchange into US$1.60 billion of 10.00% notes due 2032 modestly improves debt maturity visibility but does not remove elevated leverage as a central risk or change the importance of near term cash generation as the key catalyst.

The company’s planned appearance at the 44th Annual J.P. Morgan Healthcare Conference may give investors more colour on how management views its balance sheet, refinancing plans and upcoming headwinds such as potential Medicare price negotiations. For shareholders, that combination of capital structure updates and public commentary can be useful context when weighing the risks linked to Bausch Health’s dependence on a few key products and its sizeable interest burden.

However, investors should also be aware that the company’s high gross debt load continues to limit financial flexibility and...

Read the full narrative on Bausch Health Companies (it's free!)

Bausch Health Companies' narrative projects $10.1 billion revenue and $264.4 million earnings by 2028. This requires a 0.9% yearly revenue decline and about a $166 million earnings increase from $98.0 million today.

Uncover how Bausch Health Companies' forecasts yield a $7.29 fair value, a 5% downside to its current price.

Exploring Other Perspectives

BHC 1-Year Stock Price Chart
BHC 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$7.29 to US$68.30, showing how far apart individual views on Bausch Health can be. When you weigh those opinions against the company’s heavy debt obligations and concentrated product risks, it becomes even more important to explore several alternative viewpoints before forming your own stance.

Explore 6 other fair value estimates on Bausch Health Companies - why the stock might be worth over 8x more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.