Valeant Pharmaceuticals International (VRX) Q1 2017

Joseph C. Papa – Valeant Pharmaceuticals International, Inc.

“So obviously, we believe our share price is not where it should be. It should be higher, to be clear. But the fact is, that’s what – where it is today. I think what we’re doing is working very hard every day, as Paul said, to reduce our debt, and we think as we reduce our debt, we think that’s going to help us tremendously with the share price going forward.”

Paul S. Herendeen – Valeant Pharmaceuticals International, Inc.

Reduction in debt underappreciated by the market

“We think that completing the debt transactions was a significant event that, in my opinion, was underappreciated by the markets. By refinancing the debt, we now have a very manageable debt paydown schedule for the next several years. We shifted to about 75% fixed versus floating rate debt and, finally, we substantially improved our covenant position.”

They aim at maintaining a good credit profile

“I’ve heard chatter in the markets that Valeant doesn’t have the ability to repay all of its debt. Let me respond. We can meet all of our financial obligations through a combination of cash generation from our business, asset sales, and importantly, refinancings. There’s a permanent role for debt in our capital structure. The goal is not to repay all of our debt and operate debt-free. The goal is to maintain a credit profile that will enable us to access the capital markets when necessary to fund our future capital requirements, including to refinance maturing debt.”