Bausch + Lomb (NYSE:BLCO) announced today that it launched an offering worth $1.4 billion in new senior secured notes.

The company intends to offer the notes, due 2028, and to enter into an incremental term loan facility. Both moves aim to support the financing of the company’s pending acquisition of XIIDRA. Bausch + Lomb expects to borrow $500 million in new term B loans under the loan facility.

The company agreed to buy the non-steroid eye drops and rights to an associated delivery device from Novartis for $2.5 billion in June.

XIIDRA (lifitegrast ophthalmic) solution 5% has approval to treat the signs and symptoms of dry eye disease (DED). It focuses on inflammation associated with dry eye. The acquisition complements Bausch + Lomb’s existing dry eye portfolio, which includes eye and contact lens drops. It features the recently approved MIEBO eye drop for DED, which works differently than XIIDRA.

Bausch + Lomb expects the net proceeds to fund the XIIDRA acquisition, and pay fees and expenses related to closing. The company also earmarked funds for fees related to the offering of notes, the loan borrowing and general corporate purposes. That may include the repayment of existing debt, according to a news release.

Closing of the term loan facility remains contingent upon the completion of the acquisition. Bausch + Lomb expects that to occur concurrently with the acquisition’s closing at or around the end of September 2023. If the acquisition fails to take place on or prior to Sept. 30, 2024, or other specified events don’t occur, the escrow issuer will be required to redeem the notes at such time at a redemption price equal to the principal amount of the notes plus accrued and unpaid interest.