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Omnicare gets enough early tenders to amend 6¾% notes, wraps notes issue needed to fund purchase
By Susanna Moon
Chicago, May 18 - Omnicare, Inc. said it accepted for payment about $217 million principal amount of its outstanding 6¾% senior subordinated notes due 2013 tendered by 5 p.m. ET on May 18, the early tender deadline.
As announced on May 3, the company is also soliciting consents to amend the note indenture to eliminate most of the restrictive covenants and some events of default and make other changes.
On May 18, Omnicare entered into a supplemental indenture, and the proposed amendments are now effective.
The payment date is expected to be May 20 for notes tendered by the early tender date.
The company noted on May 18 that it completed its public offering of $400 million principal amount of 7¾% senior subordinated notes due 2020, the proceeds of which will be used to fund the tender offer.
Omnicare said on May 14 that it extended the early tender deadline in its offer to buy its $225 million of 6¾% notes. The cut-off was delayed from 5 p.m. ET on May 14.
As of the old deadline, holders had tendered and delivered consents for $207 million of the notes.
For each $1,000 principal amount, Omnicare is offering $1,033.75. The total includes an early tender payment of $30.00 per $1,000. Holders had to tender and deliver consents by the early tender deadline to receive the full amount.
The company will also pay accrued interest up to but excluding the payment date.
The tender ends at 11:59 p.m. ET on May 28.
Omnicare needs consents for a majority of the notes. Holders who tender must deliver consents, and consents may not be given without tendering notes.
J.P. Morgan Securities Inc. (800 245-8812 or call collect 212 270-3994) and SunTrust Robinson Humphrey, Inc. (call collect 404 926-5051) are the dealer managers. The information agent and tender agent is D.F. King & Co., Inc. (888 887-0082 or call collect 212 269-5550).
Omnicare is a Covington, Ky.-based pharmaceutical services company.
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