Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced that it has amended and renewed its Revolving Term Credit Facility with its banking syndicate.

The amended US$250-million Credit Facility now includes an accordion feature, which allows the facility to be increased to a total of US$400 million at Biovail's discretion. The agreement has been further restructured from the current renewable one-year term, with a one-year term-out option, and is now a three-year revolving term with an annual extension option. Pricing under the facility and certain covenants has also been revised to reflect Biovail's strong balance sheet and financial metrics.

"In 2005, Biovail executed against and met a number of financial objectives, including the maximization of cash flow," said Dr. Douglas Squires, Chief Executive Officer at Biovail Corporation. "Since January 2004, Biovail has reduced its debt by US$400 million, and currently has over US$500 million in cash on hand, which is in excess of its total remaining debt outstanding. Additionally, the changes that we have made to the Revolving Term Credit Facility provides the Company with greater flexibility and certainty to manage our capital structure as we evaluate investment and other opportunities to grow Biovail's business."

The Administrative Agent for the Revolving Term Credit Facility is The Bank of Nova Scotia. Other banks in the syndicate are Bank of Montreal, Credit Suisse, UBS AG, Royal Bank of Canada, HSBC Bank Canada and JPMorgan Chase Bank.

Total credit currently available under the Revolving Term Credit Facility - after deducting an outstanding letter of credit and excluding the accordion feature - is US$232.4 million.

Caution Regarding Forward-Looking Information and "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and within the meaning of the "safe harbour" provisions of applicable Canadian securities legislation. These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans estimates and outlook, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

Although Biovail believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: the difficulty of predicting U.S. Food and Drug Administration ("FDA") and Canadian Therapeutic Products Directorate ("TPD") approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials and finished products, the regulatory environment, the outcome of legal proceedings, consolidated tax-rate assumptions, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), the Ontario Securities Commission ("OSC"), and other securities regulatory authorities in Canada. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in our current Annual Report on Form 20-F, and in particular under the heading "Risk Factors" under Item 3, Sub-Part D. Biovail cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. We undertake no obligation to update or revise any forward-looking statement.

About Biovail Corporation

Biovail Corporation is a specialty pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, and commercialization of pharmaceutical products utilizing advanced drug-delivery technologies. For more information about Biovail, visit the Company's Web site at www.biovail.com.

For further information, please contact Ken Howling at 905-286-3000 or send inquiries to ir@biovail.com.

For further information: Biovail Corporation Kenneth G. Howling, (905) 286-3000

Source: newswire