Omnicare declares contingent cash interest, adjusts conversion rate

By Angela McDaniels

Tacoma, Wash., Jan. 9 – Omnicare, Inc. announced the accrual of contingent cash interest for two series of its convertible securities and made an adjustment to the conversion rate of two other series.

The company’s series A and series B trust preferred income equity redeemable securities will accrue contingent cash interest from Dec. 15 to March 14 in addition to regular cash interest, according to a company news release.

The contingent cash interest amount is $0.1086 per $50.00 stated liquidation amount. This is equal to 0.125% of the average trading price of the trust Piers for the five trading days ended Dec. 11.

The contingent interest amount is expected to be paid on March 16 to holders of record as of March 13.

In addition, the conversion rate of the company’s 3.25% convertible senior debentures due 2035 and 3.25% convertible senior exchange debentures due 2035 was adjusted to 12.9869 shares of common stock per $1,000 principal amount, or $77.00 per share. The change is effective as of Dec. 17.

The company’s common stock closed at $74.23 (NYSE: OCR) on Friday.

The conversion rate was previously 12.8395 shares per $1,000 principal amount and was adjusted in connection with the company’s regular quarterly dividend of $0.22 paid on Dec. 26.

Omnicare is a Cincinnati-based provider of pharmaceutical services.

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