By Rebecca Melvin
Princeton, N.J., Dec. 13 - Omnicare Inc. priced an upsized $850 million of 30-year convertibles at par to yield 3.25% with an initial conversion premium of 33.5%, according to a syndicate source.
There is a 15% greenshoe.
The issue priced toward the cheap end of talk, which was 3.125% to 3.625% for the coupon and 32.5% to 37.5% for the initial conversion premium.
According to talk, the deal was expected to be $750 million when it priced Monday after the close of markets.
JP Morgan, Lehman Brothers and CIBC World Markets were joint bookrunners, and SunTrust Robinson Humphrey, Wachovia Securities and Merrill Lynch were co-managers for the offering.
The convertible senior debentures are non-callable for 10 years and have a put in year 10.
Concurrently with the convertibles offering, Omnicare priced 12.825 million shares at $59.72 each, $225 million of eight-year senior subordinated notes to yield 6.75% and $525 million of 10-year senior subordinated notes to yield 6.875%.
Net proceeds of the stock and senior subordinated notes, as well as a portion of the proceeds from the convertibles, will be used to repay Omnicare's $1.9 billion 364-day loan facility.
Remaining proceeds of the convertibles will be used to repurchase the outstanding $375 million principal amount of Omnicare's 8.125% senior subordinated notes due 2011.
Covington, Ky.-based Omnicare is a pharmaceutical-care provider for the elderly.
| Issuer: | Omnicare Inc.
|
| Issue: | Convertible senior debentures
|
| Bookrunners: | JP Morgan, Lehman Brothers and CIBC World Markets
|
| Amount: | $850 million, upsized from $750 million
|
| Greenshoe: | $127.5 million
|
| Maturity: | Dec. 15, 2035
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 33.5%
|
| Conversion price: | $79.73
|
| Conversion ratio: | 12.5423
|
| Call: | Non-callable for 10 years
|
| Put: | In year 10
|
| Contingent interest: | At 120%, or 25 bps in the six-month interest period
|
| Price talk: | 3.125%-3.625%, up 32.5%-37.5%
|
| Pricing date: | Dec. 12
|
| Settlement date: | Dec. 15
|
| Distribution: | Registered
|
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