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Valeant (VRX) shares continued to fall Tuesday on news that the company plans to take on $3 billion in new loans after repaying approximately $1.1 billion in debt. 

The company's shares fell 8% Tuesday morning just after market's open. This was after diving more than 4% Monday. Shares continued to fall, but were at $11.43 at time of writing. Reuters reported that the company planned to take on $3 billion more in loans. 

"While the refinancing is not surprising, it reflects the cloudy outlook on future earnings, in our view," Mizuho analyst Irina Koffler wrote in a note.

According to its announcement, Valeant will refinance and amend its existing credit agreement, borrowing new term B loans and issuing new debt securities. This will extend the maturity date of the revolving credit facility and term B loans that were expected to expire in 2022. It will also repay outstanding term A loans and remove maintenance covenants on term B loans and facilities.

Valeant will also use the refinancing to repay a portion of its outstanding 6.75% senior notes due next year.

If the refinancing is completed, it's expected to close in the first quarter of 2017.

"Valeant faces significant revenue erosion in the year ahead stemming from patent expirations, and other business lines face continuing pricing pressure and weak volume growth," Moody's vice president Michael Levesque wrote in a note. "Valeant also faces considerable uncertainty related to government investigations and other legal matters."

Valeant has been struggling since last March, when it pinned the blame on its former CFO and former controller, Howard Schiller, for misstatements of earnings. The drugmaker has since been scrutinized for its alleged accounting problems and steep price hikes on drugs it acquired during years of acquisitions fueled by debt. This, combined with its concerning relationship with Philidor and its customer, R&O Pharmacy, as well as its legal but questionable accounting gamesmanship, caused Valeant's valuation to plunge. The company's shares have lost 80% of value since March 2016.

Valeant's market value is now $4.35 billion despite efforts to cut costs and divest noncore businesses.

The company, last January, began a string of divestitures by selling its Valeant Group Cosmederme to Intega Skin Sciences, a subsidiary of Knight Therapeutics and Bloom Burton for undisclosed terms. And just last month, the company sold several skincare assets to L'Oreal for $1.3 billion in cash.

Valeant had been in talks with bankers to consider the sale of Salix, a move it confirmed at the beginning of November. However, buyers for that division have yet to surface. Evercore's Umer Raffat previously noted that technically, Valeant's IDP-118, a drug in phase III trials for psoriasis treatment, could be divested. And Koffler previously wrote in a note that she expects Valeant to divest its dental business as well as its interests in "select geographies."

Valeant representatives did not return requests for comment.

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