New Issue: Omnicare prices $700 million senior notes in tranches due 2022, 2024

By Paul A. Harris

Portland, Ore., Nov. 6 – Omnicare, Inc. priced $700 million of non-callable senior notes (Ba2) in two tranches on Thursday, according to a syndicate source.

Both tranches came 12.5 basis points inside of yield talk.

A $400 million tranche of eight-year notes priced at par to yield 4¾%, versus talk in the 5% area.

A $300 million tranche of 10-year notes priced at par to yield 5%, versus talk in the 5¼% area.

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

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.

Issuer:	Omnicare, Inc.
Amount:	$700 million
Securities:	Non-callable senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc.
Co-managers:	MUFG, U.S. Bancorp Investments Inc., Huntington, KeyBanc Capital Markets, Fifth Third, Regions, SMBC Nikko
Trade date:	Nov. 6
Settlement date:	Nov. 21
Rating:	Moody's: Ba2
Distribution:	SEC registered
Marketing:	Roadshow
Eight-year notes
Amount:	$400 million
Maturity:	Dec. 1, 2022
Coupon:	4¾%
Price:	Par
Yield:	4¾%
Spread:	254 bps
Price talk:	5% area
10-year notes
Amount:	$300 million
Maturity:	Dec. 1, 2024
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	263 bps
Price talk:	5¼% area

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