You have to wonder what's going to happen to these highly leveraged companies when rates start to rise. There's an excellent article on the front page page of the WSJ yesterday ( 05/25/13) on the Valeant-Bausch deal. No doubt Valeant with a talented management team has been a winner. The big winner on this is Warburg Pincus which owns about 87 percent of Bausch and is going to make billions if this deal goes through.
Unlike Enron, Valeant has a very robust positive Cash Flow. Additionally, every single acquisition in the past 2 years (save one) has been accretive (again, unlike Enron). So your Enron analogy is misplaced.
However, I too am concerned about debt levels, especially when the Fed discontinues QE2 (my previous posts barked up this tree a few months back, but i was ok with it then - even ended up buying a few thousand more shares). I'm pretty long here at the moment, but I do want to see how they plan to administrate this new debt (the duration of those notes will Definately be something worth watching).
Valeant's got an impressive managment team with lots of finance experience. They've single handedly changed the medical and pharma paradigm. Their competitors are closely watching this all unfold and hoping to emulate. It's a great story - I just hope they continue to make the kind of decisions that will encourage me to stay on board. Good Luck everyone!