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Omnicare to buy back $5.15 million 3¾% notes, $150 million 7¾% notes
By Susanna Moon
Chicago, Aug. 23 - Omnicare, Inc. said it entered into separate, privately negotiated purchase agreements to repurchase about $5.15 million principal amount of its outstanding 3¾% notes due 2025 and $150 million principal amount of its outstanding 7¾% senior subordinated notes due 2020.
After settlement, about $132.42 million principal amount of the 3¾% notes due 2025 and $400 million principal amount of the 7¾% notes will remain outstanding, according to a company press release.
Convertibles exchange
The company also plans to retire about $180.46 million principal amount of its outstanding 3.75% convertible senior subordinated notes due 2025 under separate, privately negotiated exchange agreements.
In the exchange, the company will issue $424.25 million principal amount of new 3.5% convertible senior subordinated notes due 2044 to the holders for an original issue price of about $388.83 million.
The new notes mature in 2044 and will pay interest semiannually at a rate of 3.5% per year. Beginning in February 2021 for the downside trigger and in February 2024 for the upside trigger, the new notes will also pay contingent interest under certain circumstances based on their trading price at the time, the company said.
The new notes have an initial conversion rate of 14.2857 shares of common stock per $1,000 original principal amount of notes. The initial conversion price is about $70 per share, representing a 28.44% premium over the company's (NYSE: OCR) closing price of $54.50 on Aug. 22.
Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.
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