Omnicare underwriters exercise greenshoe, raising convertibles to $977.5 million

By Angela McDaniels

Seattle, Nov. 15 - Omnicare Inc. said the underwriters of its recent upsized offering of 3.25% convertible senior notes due 2035 exercised their 15% over-allotment option in full, raising the size of the deal to $977.5 million.

The company originally priced $850 million of the convertibles on Dec. 12, up from the expected $750 million. The deal sold at par with an initial conversion price of $79.73 for a conversion premium of 33.5%.

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 convertibles are non-callable for 10 years and have a put in year 10.

Proceeds will be used to repurchase the outstanding $375 million principal amount of Omnicare's 8 1/8% senior subordinated notes due 2011 and go toward repayment of Omnicare's $1.9 billion 364-day loan facility.

Covington, Ky.-based Omnicare is a pharmaceutical-care provider for the elderly.

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