Omnicare readies launch of $725 million credit facility for Thursday

By Sara Rosenberg

New York, Sept. 11 - Omnicare Inc. is set to hold a bank meeting in New York on Thursday morning to launch a $725 million five-year credit facility (Baa3/BBB-), according to a market source.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

The facility consists of a $300 million revolver and a $425 million term loan A, both talked at Libor plus 175 basis points, subject to a leverage-based pricing grid, the source said. The revolver has a 35 bps unused fee.

Proceeds will be used to refinance existing debt.

Net leverage is around 2.4 times.

The company has more than $600 million in EBITDA.

Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.

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