Published on 12/12/2005 in the Prospect News High Yield Daily.
New Issue: Omnicare prices $750 million bonds in two parts
By Paul A. Harris
St. Louis, Dec. 12 - Omnicare Inc. priced $750 million of senior subordinated notes (Ba3/BB+) in two tranches on Monday, according to a syndicate source.
The company priced a $225 million tranche of eight-year notes at par to yield 6¾%, on top of price talk.
Omnicare also priced a $525 million issue of 10-year notes at par to yield 6 7/8%, on the tight end of the 7% area price talk.
Lehman Brothers, JP Morgan and SunTrust Robinson Humphrey were joint bookrunners for the notes, which have been registered with the Securities and Exchange Commission. The co-managers were CIBC World Markets, Wachovia Securities, Merrill Lynch & Co. and Credit Suisse First Boston.
Proceeds will be used to help repay bank debt incurred in acquisitions including NeighborCare and to help repurchase $375 million of the company's outstanding 8 1/8% senior subordinated notes due 2011.
Omnicare is a Covington, Ky., provider of pharmaceutical care for the elderly.
| Issuer: | Omnicare, Inc.
|
| Amount: | $750 million
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Lehman Brothers, JP Morgan, SunTrust Robinson Humphrey
|
| Co-managers: | CIBC World Markets, Wachovia Securities, Merrill Lynch & Co. Credit Suisse First Boston
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 15
|
|
|
| Eight-year notes
|
| Amount: | $225 million
|
| Maturity: | Dec. 15, 2013
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 219 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2009, then callable 103.375, 101.688, par on and after Dec. 15, 2011
|
| Equity clawback: | Until Dec. 15, 2008 for up to 35% at 106.75
|
| Price talk: | 6¾% area
|
|
|
| 10-year notes
|
| Amount: | $525 million
|
| Maturity: | Dec. 15, 2015
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 223 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2010, then callable beginning at 103.438, 102.292, 101.146, par on and after Dec. 15, 2013
|
| Equity clawback: | Until Dec. 15, 2008 for up to 35% at 106.875
|
| Price talk: | 7% area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
