| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Omnicare Inc. > News item |
CVS Health begins exchange offer for Omnicare’s 4.75% notes, 5% notes
By Susanna Moon
Chicago, Sept. 22 – CVS Health Corp. said it began private exchange offers for the $400 million 4.75% senior notes due 2022 and the $300 million 5% senior notes due 2024 issued by Omnicare, Inc.
In exchange, CVS Health is offering to issue new 4.75% senior notes due 2022 and new 5% senior notes due 2024, according to a company press release.
The company also is soliciting consents to amend the notes to eliminate substantially all restrictive covenants and events of default and other note provisions.
In order to amend the notes, the company must secure the consent of holders for a majority of the aggregate principal amount of the Omnicare notes of both series in order to approve the proposed amendments for each series, the company said.
If the needed consents are only obtained for one note series, CVS Health said it may decide to waive the requirement.
The total exchange value will be par plus $2.50 in cash for each $1,000 principal amount of notes tendered for exchange by 5 p.m. ET on Oct. 5, the early tender date.
The total amount includes an early tender premium of $30 principal amount per $1,000 of notes.
Holders who tender their notes for exchange after the early deadline will receive $970 principal amount of new notes in exchange for each $1,000 principal amount plus $2.50 in cash.
The exchange offers will end at 11:59 p.m. ET on Oct. 20.
The early settlement date is expected to be Oct. 9.
Tendered notes may be withdrawn by the early tender deadline.
D.F. King & Co., Inc. (800 814-9324, 212 269-5550 or dfking.com/Omnicare) is the information agent.
CVS is a pharmacy retailer is based in Scarsdale, N.Y. Omnicare is a Cincinnati-based provider of pharmaceutical services.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.