Published on 9/15/2011 in the Prospect News High Yield Daily.
New Issue: Omnicare sells upsized $150 million tap of 7¾% notes due 2020 at 100.25
By Paul A. Harris
Portland, Ore., Sept. 15 - Omnicare, Inc. priced an upsized $150 million add-on to its 7¾% senior subordinated notes due June 1, 2020 (Ba3/BB/) at 100.25 to yield 7.698% on Thursday, according to market sources.
The reoffer price came at the rich end of the 100 to 100.25 price talk.
J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the quick-to-market add-on, which was upsized from $100 million.
The Covington, Ky.-based pharmaceutical services company plans to use the proceeds to redeem its $100 million of outstanding 6 7/8% senior subordinated notes due 2015 and for general corporate purposes.
The original $400 million issue priced at par on May 13, 2010.
| Issuer: | Omnicare, Inc.
|
| Amount: | $150 million, increased from $100 million
|
| Proceeds: | $150,375,000
|
| Maturity: | June 1, 2020
|
| Security description: | Add-on to senior subordinated notes due June 1, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7¾%
|
| Price: | 100.25
|
| Yield: | 7.698%
|
| Spread: | 590 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: | Sept. 15
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 100 to 100.25
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced at par on May 13, 2010
|
| Total issue size: | $550 million
|
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