Omnicare declares contingent cash interest, adjusts conversion rate

By Angela McDaniels

Tacoma, Wash., March 27 – 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 its 3.75% convertible senior subordinated notes due 2025.

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

The contingent cash interest amount is $0.1148 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 March 12.

The contingent interest amount is expected to be paid on June 15 to holders of record as of June 12.

In addition, the conversion rate of the company’s 3.75% convertibles was adjusted to 37.644 shares of common stock per $1,000 principal amount, or $26.56 per share. The change is effective as of March 10.

The company’s common stock closed at $76.80 (NYSE: OCR) on Friday.

The conversion rate was previously 37.2532 shares per $1,000 principal amount and was adjusted in connection with the company’s regular quarterly dividend of $0.22 paid on March 27.

Omnicare is a Cincinnati-based provider of pharmaceutical services.

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