Omnicare to start roadshow Tuesday for $750 million two-part note offering

By Paul A. Harris

St. Louis, Dec. 5 - Omnicare Inc. will start a roadshow on Tuesday for its $750 million offering of senior subordinated notes in two tranches (expected ratings Ba3/BB+), according to a market source.

The roadshow concludes on Dec. 12, with pricing expected thereafter.

The Covington, Ky., provider of pharmaceutical care for the elderly expects to sell eight-year notes with four years of call protection, and 10-year notes with five years of call protection.

Lehman Brothers, JP Morgan and SunTrust Robinson Humphrey are joint bookrunners for the registered notes. CIBC World Markets, Merrill Lynch & Co., Wachovia Securities and Credit Suisse First Boston are co-managers.

The company also plans to sell $750 million of convertible bonds and raise about $750 million in the sale of equity.

Proceeds will be used to repay bank debt incurred in acquisitions, including NeighborCare, and to repurchase $375 million of outstanding 8 1/8% senior subordinated notes due 2011.

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