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Omnicare to swap out $241.5 million 3.25% convertibles due 2035
By Susanna Moon
Chicago, Oct. 31 – Omnicare, Inc. plans to issue about $241.5 million principal amount of new 3.25% senior convertible exchange debentures due 2035 with updated put and call options in exchange for its existing 3.25% senior convertible debentures due 2035.
The company will retire its existing $241.5 million 3.25% convertibles due 2035 in separate, privately negotiated exchange agreements, according to an 8-K filing with the Securities and Exchange Commission.
Other than changes to the put date and call date and the initial interest payment date, the terms of the new 2035 debentures will be substantially similar to those of the existing 2035 debentures, the filing noted.
The new convertibles have a put option at par plus accrued interest on Jan. 15, 2021, and they are callable par beginning Jan. 15, 2018.
The initial conversion rate will be 12.8395 shares per $1,000 principal amount, for a conversion price of about $77.88 per share.
The notes are convertible at any time after Dec. 15, 2033 or before then if the company’s common stock closes above 130% of the conversion price for at least 20 trading days in the 30 consecutive trading day period ending on the last trading day of the previous fiscal quarter.
The notes also are convertible if the new notes have been called until the close of business on the business day prior to the redemption date; if specified distributions to holders of the company’s common stock are made or specified corporate events occur; or if, during the five consecutive business day period following any five consecutive trading day period, the average trading price of the new debentures is less than 98% of the average of the closing sale price of the company’s common stock during that five-day period multiplied by the conversion rate.
Omnicare is a Cincinnati-based provider of pharmaceutical services.
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