Published on 5/13/2010 in the Prospect News High Yield Daily.
New Issue: Omnicare prices $400 million 10-year notes at par to yield 7¾%
By Paul A. Harris
St. Louis, May 13 - Omnicare, Inc. priced a $400 million issue of 10-year senior subordinated notes (Ba2/BB/) at par to yield 7¾% on Thursday, according to an informed source.
The yield printed at the tight end of the 7¾% to 8% price talk.
J.P. Morgan Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the quick-to-market deal.
Co-managers were Daiwa Capital Markets, Goldman Sachs & Co., the Huntington Investment Co., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities, RBC Capital Markets Corp. and RBS Securities Inc.
Proceeds will be used to fund the tender for $225 million of the company's 6¾% senior subordinated notes due 2013, to refinance bank debt and for general corporate purposes.
Omnicare is a Covington, Ky.-based pharmaceutical services company.
| Issuer: | Omnicare, Inc.
|
| Amount: | $400 million
|
| Maturity: | June 1, 2020
|
| Securities: | Senior subordinated notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Daiwa Capital Markets, Goldman Sachs & Co., the Huntington Investment Co., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities, RBC Capital Markets Corp., RBS Securities Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 421 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 1, 2015, then callable at 103.875, 102.583, 101.292, par on and after June 1, 2018
|
| Equity clawback: | 35% at 107.75 until June 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | May 13
|
| Settlement date: | May 18
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Quick-to-market
|
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