Valeant: Room to Move?

Valeant Pharmaceuticals International ( VRX ) has so many problems that it's hard to pick just one as being more important than the others. But if pressed, most investors would probably point to its massive debt load, and the financial metrics required to avoid a technical default, known as "covenants" in industry parlance. In fact, you could argue that those covenants were a bigger worry than the debt itself, because they l imited Valeant's ability to maneuver as it tries to fix all its problems. Well, Valeant's refinancing, which it completed this week, may have solved the covenant problem. RBC's Douglas Miehm and Joel Hurren explain: