NeighborCare tenders for 6 7/8% notes

New York, Aug. 1 - Omnicare, Inc. and its NeighborCare, Inc. subsidiary announced NeighborCare has begun a cash tender offer for its $250 million principal amount of 6 7/8% senior subordinated notes due 2013.

NeighborCare is also soliciting consents to amend the note indenture to eliminate most of the principal restrictive covenants and certain events of default and to amend other provisions.

For each $1,000 principal amount of notes, NeighborCare will pay a price based on a spread of 50 basis points over the bid-side yield to maturity of the 3 3/8% U.S. Treasury note due Nov. 15, 2008. The total includes a consent payment of $30.00 per $1,000.

Pricing is expected to be fixed at 2 p.m. ET on Aug. 15.

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

The consent payment will only be made to holders who tender with consents by 5 p.m. ET on Aug. 12.

The offer ends at midnight ET on Aug. 26.

The Covington, Ky., provider of pharmaceutical care for the elderly needs consents from holders of a majority of the notes.

Holders who tender will be required to consent and vice versa.

The offer is subject to a minimum condition and a supplemental indenture being executed.

Lehman Brothers Inc. is dealer manager and solicitation agent (800 438-3242 or call collect 212 528-7581). The information agent and tender agent is D.F. King & Co., Inc. (800 758-5378 or call collect 212 267-5550).

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