Omnicare adjusts conversion rate for 3.75% convertibles due 2042

By Toni Weeks

San Luis Obispo, Calif., Nov. 11 – Omnicare, Inc. adjusted the conversion rate of its 3.75% convertible senior subordinated notes due 2042, according to a press release.

Effective immediately, the adjusted conversion rate is 24.5154 shares of common stock per $1,000 principal amount of notes, or about $40.79 per share.

The conversion rate was lowered from the previous rate, 24.3607 shares per $1,000 principal amount, to give effect to carry-forward adjustments related to the company’s 2014 regular quarterly dividend payments and in connection with the notice of redemption for the notes, which was issued on Monday.

Holders of the notes may convert all or a portion of their notes by Dec. 9. Upon conversion, the company will pay (i) cash and shares of 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 and (ii) a cash make-whole payment of $56.0526 per $1,000 principal amount of notes.

As previously reported, all outstanding 3.75% convertibles due 2042 will be redeemed on Dec. 10 at a redemption price of $1,048.89 per $1,000 principal amount of notes plus accrued interest.

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

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