Valeant to Unveil Crucial Earnings Insight and Forecasts

With struggling Canadian drugmaker Valeant Pharmaceuticals (VRX) set to report its second-quarter results Tuesday, Real Money will be keeping a close eye on the drugmaker's earnings guidance for the rest of 2016. Any further earnings cuts at Valeant could soon invite the debt-laden drugmaker's lenders to a favorable seat at the bargaining table if Valeant finds itself in need of amending the credit agreements and bond indentures that govern its roughly $31 billion debt stack. Valeant risks violating lender-friendly covenants including interest-coverage requirements if the company's earnings guidance for the year falls short of its current $4.8 billion estimates so far this year, some analysts say.

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