Omnicare calls 3.75% convertibles due 2042 for redemption on Dec. 10

By Toni Weeks

San Luis Obispo, Calif., Nov. 10 – Omnicare, Inc. issued a call to redeem all of its outstanding 3.75% convertible senior subordinated notes due 2042, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price of about $1,048.89 per $1,000 principal amount of notes plus accrued interest will be paid on the Dec. 10 redemption date.

Holders may instead opt to convert all or a portion of their notes by Dec. 9. Upon conversion, the company will pay cash and shares of its common stock, if any, based on a daily conversion value calculated on a proportionate basis for each day of the applicable 25-trading-day cash settlement averaging period. The current conversion rate is 24.3607 shares of common stock per $1,000 principal amount of convertibles, equivalent to about $41.05 per share.

The Cincinnati-based company is a provider of pharmaceutical services.

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