Shares of Valeant Pharmaceuticals International Inc. surged 3.7% in premarket trade Thursday, after the drugmaker said lenders approved an amendment to its credit facility, to allow more financial flexibility. As part of the agreement, Valeant agreed to increase interest rate margins on its credit facility by 0.50% and to pay an amendment fee equal to 0.25% of the total principal amount. Other amendments include additional flexibility to sell assets, to permit the issuance of secured notes with shorter maturities to repay debt, to permit issuing other debt to repay term loans and the cut the interest coverage maintenance covenant to provide additional headroom. "We are pleased to have the support of our lenders and appreciate their confidence in the company's future," said Chief Executive Joseph Papa. The stock, which had soared 20% so far this week through Wednesday, had still tumbled 70% year to date, while the S&P 500 had gained 6.8%.
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