Alaris tenders for 7¼% notes

New York, July 8 - Cardinal Health Inc. said its Alaris Medical Systems Inc. subsidiary has started a tender offer and consent solicitation for any and all of its $175 million principal amount of 7¼% senior subordinated notes due 2011.

The consent solicitation is to amend the indenture to eliminate or modify substantially all of the restrictive covenants and many of the provisions defining an event of default.

The consent deadline is July 20 while the tender ends at midnight ET on Aug. 3.

The tender price reflects that Alaris has the right to exercise the equity claw for 35% of the notes.

For each $1,000 principal amount of notes, holders who tender by the consent deadline will receive the sum of 35% of the equity clawback price and 65% of the fixed spread price. The equity clawback price is $1,072.50 per $1,000 principal amount. The fixed spread price will be the present value on Aug. 3 of all future cash flows on the notes to the first call date of July 1, 2007.

Holders who tender after the consent deadline but before the expiry will receive the same amount less the $30.00 per $1,000 principal amount consent payment.

Alaris will also pay accrued interest up to but excluding the payment date.

Holders who tender by the consent deadline will be deemed to have given consents. Consents may not be given without tendering.

Cardinal Health, a Dublin, Ohio provider of products and services to the health care industry, said the offer is subject to, among other things, the receipt of the necessary consents.

Questions may be directed to MacKenzie Partners Inc. (800 322-2885, banks and brokers call collect 212 929-5500).

© 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.