Omnicare expected to launch $750 million credit facility to retail on June 19

By Sara Rosenberg

New York, June 13 - Omnicare Inc.'s $750 million credit facility is expected to launch to retail with a bank meeting on June 19, although the deal is already in market to managing agents, according to a syndicate source. 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 replaces the company's existing facility, consists of a $250 million four-year term loan A and a $500 million four-year revolver. Both tranches are priced at Libor plus 137.5 basis points.

Marketing to managing agents has been going well, according to the syndicate source. "I think one's already in and we're waiting to hear from the other five or six," he added.

The credit facility has already been funded to the company, despite the fact that syndication has not yet wrapped up.

Concurrent with obtaining the new credit facility, the Covington, Ky. provider of pharmaceutical care for the elderly sold $250 million aggregate principal amount of 6 1/8% senior subordinated notes due 2013, 6,468,750 shares of common stock and, through a statutory trust formed by the company, $345 million aggregate principal amount of convertible trust preferred securities due 2033.

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

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