Bausch & Lomb Corp. has filed paperwork for its initial public offering, nearly a year and half after its parent company, Bausch Health Cos., said it would spin off the eye-care company. Analysts Disclosure: I/we have a beneficial long position in the shares of BHC either through stock ownership, options, or other derivatives. While technical overhang is usually strongest when a company spins off a small or non-essential component of its business, it may still be present in this case where BHC is spinning off arguably its most attractive business. Find the latest Bausch Health Companies Inc. (BHC) stock discussion in Yahoo Finance's forum. The sale of 20% of BLCO and the sale of the entirety of Solta Medical, even at a conservative valuation, are sufficient to allow BHC to shoulder its newly reduced debt load with minimal risk of insolvency. Bausch + Lomb remains on track to spin off from Bausch Health, following the expiry of customary lock-ups related to the IPO . When Valeant acquired Bausch + Lomb, the eye products company's annual revenue was nearly $1.3 billion. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. BLCO Stock IPO: When Does Bausch + Lomb Go Public? While I have illuminated the valuation arbitrage opportunity apparent in the BLCO spinoff, I have not proffered any valuations of BHC, BLCO, and Solta Medical of my own. Thus far, BHC has not yet IPOed Solta Medical and has only sold 10% of its stake in BLCO. This price range would also allow it to raise $840 million. Thus far, BHC has not yet IPOed Solta Medical and has only sold 10% of its stake in BLCO. For conservatism's sake, let's assess BHC's prospects if the BLCO distribution does not take place. In both cases, the higher BLCO is trading, the better for us as BHC shareholders. A taxable spinoff is a divestiture of a subsidiary or division by a publicly-traded company, which will be subject to capital gains taxation. Accordingly, this deal was largely seen as a way to unlock shareholder value. Solta Medical is relatively much smaller. The newly public company, Bausch + Lomb Corp., will not receive any proceeds from the sale of the common shares.) One Chart That Indicates This Bear Market Is Ending. However, the EV/EBITDA multiple for the industry is approximately 12. Accordingly, this deal was largely seen as a way to unlock shareholder value. The remaining Bausch and Lomb shares will be distributed to shareholders. According to 17 analysts, the average rating for BLCO stock is "Buy." His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. The IPO price is currently expected to be between $21 and $24 per share. By my preliminary estimates, BHC loses at. Its now singular focus on its own core operations can lead to profitability and a higher stock price. A spinoff is created when a company forms some part of its operations into a separate entity and distributes shares in it tax free to shareholders of the parent company. I have no business relationship with any company whose stock is mentioned in this article. Current Bausch Health CEO Joseph Papa will remain as chairman until the full separation of Bausch + Lomb this week, when he will be succeeded by Robert Power. Louis Navellier and the InvestorPlace Research Staff, FRC Stock Alert: First Republic Finally Collapses, Stock Market Crash Alert: Mark Your Calendars for May 3, 3 Meme Stocks to Buy With Actual Growth Potential, MULN Stock Alert: Mullen Announces New Info on D.C. Contract. All investments are encumbered with the risk of catastrophe, such as, in this case, BHC's pharmaceutical business being hit with surprise lawsuits or the macro environment deteriorating to an extent as to render BHC's stake in BLCO as worthless on paper. Bausch Health Companies Is A Strong Buy (NYSE:BHC) And if BHC were to progressively unload its share of BLCO at current market conditions and used the proceeds to extinguish debt it would eliminate over $5 billion in debt. Find out the direct holders, institutional holders and mutual fund holders for Bausch Health Companies Inc. (BHC). Bausch + Lomb is set to be one of the most intriguing initial public offerings this week, and investors are already gearing up for the BLCO stock IPO. GameStop Forecast: Can GME Stock Prove the Skeptics Wrong in 2023? The Selling Shareholder also intends to grant the underwriters a 30-day option to purchase up to an additional 5.25 million common shares of Bausch + Lomb to cover over-allotments, if any. The IPO for Bausch + Lomb ( BLCO) has been priced at between $21 and $24 per share. Spinoffs shares can lose value for a period of time after the new company is created for other reasons, as well. Bausch Health is unlocking value by spinning off into 3 separate companies. In my calculations, BLCO generates normalized, levered FCF of approximately $650 million per year for BHC. The main risk is that BHC won't be able to meet the bond covenants due to the current economic issues. Nous, Yahoo, faisons partie de la famille de marques Yahoo. The Second Amendment provides for a new term facility with an aggregate principal amount of $2,500 million (the "2027 Term Loan B Facility") maturing on February 15, 2027 and a new revolving credit facility of $975 million (the "2027 Revolving Credit Facility") that will mature at the earlier of February 15, 2027 and the date that is 91 calendar days prior to the scheduled maturity of indebtedness for borrowed money of Bausch Health and Bausch Health Americas, Inc. ("BHA"), a wholly owned subsidiary of Bausch Health, in an aggregate principal amount in excess of $1,000 million. Share your opinion and gain insight from other stock traders and investors. pass through rj45 cat6. Khadija Khartit. Article printed from InvestorPlace Media, https://investorplace.com/2022/05/blco-stock-ipo-when-does-bausch-lomb-go-public-what-is-the-bausch-lomb-ipo-price-range/. Today, it appears the market has agreed. But, as the Oracle of Omaha himself would recommend, focusing on "what's important and knowable," these concerns do not sway my confidence in an investment in BHC common stock. The highly anticipated Bausch + Lomb(NYSE:BLCO) initial public offering (IPO) is now a reality, and BLCO stock is now trading. Bausch + Lomb is one of two separations and IPOs BHC is preparing. Today, it appears the market has agreed. In fact, because BLCO was such an attractive asset to BHC, some shareholders of BHC may unload BHC after the equity distribution. Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a freelance writer and editor. This comes on a rather mixed day in the markets. FY2023 EPS Estimates for Bausch Health Companies Inc. Lowered by Zacks Here's what that means for investors. In connection with the IPO, Bausch Health entered into its previously announced Second Amendment (the "Second Amendment") in respect of its existing credit agreement (the "Existing Credit Agreement"). Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. The eye health products company is a wholly-owned subsidiary of Bausch Health Companies Inc. (TSX:BHC), and reports of its IPO plan had started surfacing last year. The Bausch + Lomb Credit Agreement also provides for a five-year revolving credit facility in the amount of $500 million. New investors looking to take advantage of a spinoff's benefits can choose to invest in the parent, the subsidiary, or both.