Omnicare ups convertibles' conversion rates, raises Piers interest

By Marisa Wong

Madison, Wis., Jan. 10 - Omnicare, Inc. announced increases to the conversion rates of its convertibles and said its trust preferred income equity redeemable securities will accrue contingent interest.

Effective as of Dec. 17, the adjusted conversion rate for the 3.25% convertible senior debentures due 2035 is 12.8395 shares of common stock per $1,000 principal amount, or about $77.88 per share. Effective as of Dec. 12, the adjusted conversion rate for the 3.75% convertible senior subordinated notes due 2042is 24.3607 shares of common stock per $1,000 principal amount, or roughly $41.05 per share.

The conversion rates were adjusted due to a regular quarterly dividend of $0.20 paid on Dec. 24 to stockholders of record as of Dec. 16.

The conversion rate for the 2035 notes and 2042 notes was previously 12.7008 shares and 24.0964 shares, respectively.

In addition, for the period from Dec. 15 to March 14 Omnicare's series A and series B trust preferred income equity redeemable securities will accrue contingent interest in addition to regular cash interest.

The trust Piers will accrue contingent interest at a rate of 0.125% of the average trading price of the trust Piers for the five trading days ended Dec. 12.

Contingent cash interest, which Omnicare has determined to be about $0.0905 per $50 liquidation amount, will be payable to holders of record as of March 14.

Payment of the contingent cash interest will be made on March 17.

Based in Cincinnati, Omnicare provides pharmaceutical services.

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