Omnicare to sell $500M in convertible senior notes

Tue, 11/30/2010 - 1:45pm
The Associated Press

Omnicare Inc., which sells drugs to nursing homes and long-term care facilities, said Tuesday that it plans to sell $500 million in debt, due 2025.

After selling these convertible senior subordinated notes, Omnicare expects to use the proceeds to buy back up to $525 million in notes it sold in a previous offering. The notes it hopes to buy back are due in 2035 and have a 3.25 percent interest rate.

Any remaining proceeds will be used for general corporate purposes.

Underwriters will have the option to purchase up to $75 million in additional notes to cover excess demand. Barclays Capital, Sachs & Co. and J.P. Morgan are the lead underwriters of the offering.

Shares of Omnicare rose 2 cents to $23.08 in after-hours trading. In the regular session, the stock closed at $23.06, down 39 cents.


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