BioScrip further extends expiration of tender offer for 10¼% notes

By Marisa Wong

Madison, Wis., July 9 - BioScrip, Inc. said it is extending the consent payment deadline and expiration date of the tender offer and consent solicitation for its $225 million 10¼% senior notes due 2015.

The consent payment deadline, withdrawal deadline and expiration for the offer will now be 5 p.m. ET on July 30, extended from 5 p.m. ET July 8. The company originally set the consent payment deadline at 5 p.m. ET on June 14 and the offer expiration at midnight ET on June 28. The consent payment deadline, withdrawal deadline and offer expiration were previously extended on June 17.

As of the close of business on July 8, the company had received tenders and consents for about $104.4 million, or 46.38%, of the notes. According to a previous announcement, holders had tendered roughly $107.4 million, or 47.72%, of the notes as of the original consent payment deadline.

The company began the cash tender offer for any and all of the notes on June 3, 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 expiration date. Originally, 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 an earlier 8-K filing with the Securities and Exchange Commission, BioScrip 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, N.Y.-based BioScrip provides infusion and home-care solutions.

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