Omnicare $750 million credit facility expected to launch mid-June

By Sara Rosenberg

New York, June 4 - Omnicare Inc.'s $750 million credit facility is expected to launch in mid-June, a syndicate source told Prospect News on Wednesday. SunTrust Robinson Humphrey and JPMorgan are co-lead arrangers on the deal, and Lehman Brothers, UBS Warburg, Wachovia Securities and CIBC World Markets are also involved in the deal.

The facility, which will replace the existing facility, consists of a $250 million four-year term loan A and a $500 million four-year revolver. Initial price talk is not being disclosed at this time but should be available in about a week or so, according to the syndicate source.

Concurrent with obtaining the new credit facility, the Covington, Ky. provider of pharmaceutical care for the elderly intends to offer $250 million aggregate principal amount of senior subordinated notes due 2013, 5.625 million shares of common stock and $250 million aggregate principal amount of convertible trust preferred securities due 2033.

Proceeds from the term loan and the notes will be used to repay the $474 million balance under the existing credit facility. Proceeds from the common stock offering and the convertibles will be used to redeem the $345 million outstanding 5% convertible subordinated debentures due 2007. Any remaining proceeds will be used for general corporate purposes.

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