Omnicare sets tranche sizes, talk in $700 million two-part bullet offering; pricing Thursday

By Paul A. Harris

Portland, Ore., Nov. 6 – Omnicare, Inc. set tranche sizes and price talk for its $700 million two-part offering of non-callable senior notes (Ba2), according to a syndicate source.

A $400 million tranche of eight-year notes is talked to yield in the 5% area.

A $300 million tranche of 10-year notes is talked to yield in the 5¼% area.

Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter.

BofA Merrill Lynch is the left bookrunner. Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

MUFG, U.S. Bancorp Investments Inc., Huntington, KeyBanc Capital Markets LLC, Fifth Third Securities Inc., Regions and SMBC Nikko are the co-managers.

The notes in both tranches feature 101% poison puts.

The Cincinnati-based provider of pharmaceutical services plans to use the proceeds to fund the redemption of its 2020 notes and for general corporate purposes, including, without limitation, refinancing a portion of other outstanding debt securities, including convertibles.

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