Caremark Rx to redeem 7% convertible trust preferreds

New York, Sept. 13 - Caremark Rx, Inc. said it will redeem its outstanding 7% convertible preferred securities due 2029, issued by Caremark Rx Capital Trust I.

The Birmingham, Ala. pharmaceutical services company said the redemption will be on Oct. 15 at $52 plus accrued distributions. The securities have a liquidation preference of $50.

Holders can convert the securities into stock at any time up to 5.00 p.m. ET on Oct. 11. The securities convert at $7.4488 per share. Caremark Rx's stock closed at $16.67 on Thursday.

If all the securities are redeemed for cash the company will pay a total of $208 million. If all are convert it will issue 26.9 million shares.

Caremark Rx also said it amended its credit facility to allow it to repurchase up to $150 million of its common stock with no annual limit. Previously the company could buy back that amount in total but no more than $50 million in a year.

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