BioScrip gets tenders for 47.72% of 10¼% notes due 2015 so far

By Toni Weeks

San Luis Obispo, Calif., June 17 - BioScrip, Inc. announced it has taken in tenders and consents for about $107.4 million, or 47.72%, of its outstanding $225 million of 10¼% senior notes due 2015 by close of business on June 14, according to an 8-K filing with the Securities and Exchange Commission.

The company also said it has extended the consent payment deadline, withdrawal deadline and expiration date for the offer to 5 p.m. ET on July 8. The company originally said the consent payment deadline would be 5 p.m. ET on June 14, and the offer would expire at midnight ET on June 28.

The company began the cash tender offer on June 3 for any and all of the notes, concurrently soliciting consents to amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants, some events of default and other provisions.

The total purchase price will be $1,056.25 per $1,000 of notes tendered by the July 8 expiration date. Previously, only holders who tendered their notes by the June 14 consent payment deadline could receive that amount, which included a $30.00 consent payment. The company will also pay accrued interest up to, but not including, the settlement date.

Approval of the amendments requires the consent of holders of at least a majority in principal amount of the outstanding notes as well as the company obtaining senior credit financing in an amount that is sufficient to pay the total consideration and fees related to the offer. According to the 8-K, BioScrip announced it has negotiated with lenders to modify the terms of its senior credit financing to provide sufficient additional capacity to both refinance BioScrip's existing debt and complete the acquisition of CarePoint Partners Holdings LLC and its subsidiaries.

SunTrust Robinson Humphrey, Inc. (404 926-5051) , Jefferies LLC (888 708-5831) and Morgan Stanley & Co. LLC (800 624-1808 or call collect 212 761-1057) are the dealer managers. Global Bondholder Services Corp (866 736-2200 or call collect 212 430-3774) is the information agent.

Elmsford, NY.-based BioScrip provides infusion and home-care solutions.

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