Our organic growth in the first quarter of 2022 was stable compared to the same quarter last year, despite incremental macro pressures and a challenging supply chain environment, Thomas Appio, incoming chief executive officer, said in a release. Such a relative valuation is, in my view, inappropriate. 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. 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. All rights reserved. The Bausch + Lomb Credit Agreement provides for a five-year term loan facility in an initial principal amount of $2,500 million. I have no business relationship with any company whose stock is mentioned in this article. Their stock prices remain stable even when the market oscillates wildly. Ultimately, spinoffs tend to perform well over time. Do this now. quotes delayed at least 15 minutes, all others at least 20 minutes. Furthermore, Deutsche Bank recently concluded that the CAGR for Bausch and Lomb is likely to be somewhat higher than the market growth rate, but it's unlikely to be significantly higher than the market growth rate. To be held June 14, 2023 . Spinoffs shares can lose value for a period of time after the new company is created for other reasons, as well. . The remaining 80% is being used as collateral for BHC's 20B+ debt. Public competitors like Alcon (ALC) trade at a multiple of 21+. Bausch Health Companies Inc is the largest individual Bausch & Lomb shareholder, owning 310.45M shares representing 88.70% of the company. Also today, Bausch Health notified the Trustee and holders of its outstanding 9.000% Senior Notes due 2025 that the conditions to its previously announced conditional redemption of such notes would not be satisfied, and the conditional redemption was cancelled. I can't believe that this has . These statements include those set forth above regarding our plan to spin off the Company's eye health business, the ability of each of BHC and Bausch + Lomb - NewCo to focus on distinct therapeutic areas, the anticipated capital structure and financial strength of BHC and Bausch + Lomb - NewCo following the spinoff, the tax treatment of the transaction for the Company and its shareholders . Bausch Health Companies Inc. (NYSE:BHC - Get Rating) - Research analysts at Zacks Research lifted their Q1 2024 earnings per share estimates for shares of Bausch Health Companies in a note issued to investors on Wednesday, April 26th.Zacks Research analyst E. Bagri now forecasts that the company will post earnings per share of $0.93 for the quarter, up from their prior estimate of $0.89. The post BLCO Stock: 7 Things to Know About the Bausch + Lomb IPO Today appeared first on InvestorPlace. Click here to find out more . In determining BHC's value, subjectivity is more likely to enter the fray due to its enormously leveraged position. However, BHC is already trading well below my conservative estimate of its post-spinoff value. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Furthermore, my valuation of Solta Medical, which is set to be IPOed and sold entirely by BHC, is approximately $2 billion. Not all spinoffs generate shareholder value in early years. Source: OleksandrShnuryk / Shutterstock.com, 5 Hypergrowth Stocks With 10X Potential in 2023. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. As far as valuing Solta Medical goes, I think $2 billion is a comfortably conservative valuation for a company growing at more than 30% per year with greater than $100 million in EBITDA and greater than $80 million in FCF. The BHC spinoff of BLCO took place on May 6 at $20 a share, giving it a market capitalization of $7 billion. Companies create a spinoff for several reasons, all of them grounded in added financial return for the parent company. Spinoffs can have great potential for growth due to their smaller size and a management motivated to achieve success. Today, it appears the. The main risk is that BHC won't be able to meet the bond covenants due to the current economic issues. If you have an ad-blocker enabled you may be blocked from proceeding. The reported loss of $0.19 per share missed analysts' expectations for a gain of $1.03, however. It's stock price crashed recently due to Q1 results. Its now singular focus on its own core operations can lead to profitability and a higher stock price. The 12-month stock price forecast is 22.95, which is an increase of 39.60% from the latest price. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. As with any company, value is created as revenue is generated, profits are captured, and business success is achieved. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with more than 12,000 employees and a presence in nearly 100 countries. If BHC can get it's leverage down and meet bond covenants, BHC can complete the spinoff by issuing the remaining 80% of the BLCO shares to BHC shareholders.