Omnicare adjusts conversion rate of 3.75% convertibles due 2025

By Tali Rackner

Norfolk, Va., April 8 - Omnicare, Inc. adjusted the conversion rate for its 3.75% convertible senior debentures due 2025 to 37.2532 shares from 36.8808 shares per $1,000 principal amount, effective March 10.

The new conversion rate is equivalent to about $26.84 per share, according to a press release.

The rate was adjusted in connection with the regular quarterly dividend of $0.20 paid on March 27 to stockholders who owned Omnicare common shares on the record date of March 12.

The company also announced that for the period from March 15 to June 14, its series A and series B trust preferred income equity redeemable securities will accrue contingent interest at a rate of 0.125% of the average trading price of the preferreds for the five trading days ended March 13, in addition to the continued accrual of regular cash interest.

Contingent cash interest, which Omnicare has determined to be about $0.090 per $50 stated liquidation amount of preferreds, will be payable to holders of the preferreds as of June 13, according to a press release.

The payment of contingent cash interest is expected to be made on June 16.

Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.

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