Omnicare prices upsized $850 million convertibles to yield 3.25%, up 33.5%

New York, Dec. 12 - Omnicare, Inc. said it priced an upsized $850 million offering of 3.25% convertible senior debentures due 2035 with a 33.5% initial conversion premium.

The deal was increased from a planned size of $750 million and came within talk which put the yield at 3.125% to 3.625% and the conversion premium at 32.5% to 37.5%.

JP Morgan, Lehman Brothers and CIBC World Markets are joint bookrunners for the off-the-shelf sale. SunTrust Robinson Humphrey, Wachovia Securities and Merrill Lynch are co-managers.

Omnicare also priced 12.825 million common shares at $59.72 each, a $225 million tranche of eight-year notes at par to yield 6¾%, on top of price talk, and a $525 million issue of 10-year notes at par to yield 6 7/8%, on the tight end of the 7% area price talk.

The convertibles have a conversion ratio of 12.5423 and a conversion price of $79.73.

Proceeds from the transactions will be used to repay Omnicare's $1.9 billion 364-day loan facility and to buy back the 8 1/8% senior subordinated notes due 2011 from the $375 million outstanding that are tendered.

Covington, Ky.-based Omnicare is a nursing home drug-services provider.

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