Valeant Pays Down $811 Million Of Term Loans, Shares Rise

Valeant Pharmaceuticals International Inc. shares jumped 1.2% in premarket trade Monday, after the company said it has paid down $811 million of senior secured loans, keeping it on track with its debt-reduction goals. The company said it used the proceeds of the recent sale of Dendreon Pharmaceuticals LLC to pay off the loans. "With this transaction, all mandatory amortization has been paid through 2019," the company wrote in a statement. Valeant has reduced its debt by more than $4.3 billion since the end of the first quarter of 2016. The company, which started on a debt reduction track after an accounting scandal that battered its reputation and led to the ouster of its longtime chief executive, said it still expects to pay down $5 billion in debt using the proceeds of asset sales and free cash flow within 18 months of August 2016. Shares have gained 12% in 2017, while the S&P 500 has gained 8.3%.

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