Omnicare issues price talk on $750 million two-part subordinated notes offering

By Paul A. Harris

St. Louis, Dec. 9 - Omnicare Inc. issued price talk on its $750 million two-part offering of senior subordinated notes (Ba3/BB+), according to a market source.

The Covington, Ky., provider of pharmaceutical care for the elderly talked its eight-year notes at the 6¾% area. Omnicare's 10-year notes, meanwhile, are talked at the 7% area.

Pricing is expected early in the Dec. 12 week.

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 from 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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