Bausch & Lomb exchanges 98.6% of convertibles

New York, Dec. 15 - Bausch & Lomb said holders tendered $157.7 million or 98.6% of its $160 million principal amount of floating-rate convertible senior notes due 2023 in its exchange offer for the securities.

The offer expired at 5 p.m. ET on Dec. 14.

As announced on Nov. 15, Bausch & Lomb was offering to exchange its floating-rate convertible senior notes in response to new accounting rules.

The company was offering new convertibles with identical terms except that settlement on conversion will be paid in cash up to the principal amount and the remainder in stock.

The new convertibles also have change-of-control protection through a higher conversion rate through July 31, 2010.

The Rochester, N.Y., eyecare company is paying $2.50 per $1,000 principal amount to holders who participate in the exchange.

Bausch & Lomb said it was carrying out the exchange because of new accounting regulations that will require it to treat the existing notes as if they are fully converted when it is calculating diluted earnings per share, whether or not the contingent conversion trigger has been hit.

Citigroup Global Markets Inc. is dealer manager, and Citibank NA is the exchange agent. Georgeson Shareholder Communications is the information agent (866 873-6981, banks and brokers call 212 440-9800).

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