Oct 16 (Reuters) - Bausch & Lomb Inc (BOL.N: Quote, Profile, Research) said it agreed to sell $650 million principal amount of 9.875 percent notes due 2015 as part of the proposed takeover by WP Prism Merger Sub Inc. Merger Sub, which was formed by investment funds associated with private equity firm Warburg Pincus LLC, will use the net proceeds to consummate the merger.