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Omnicare could raise $560M from senior note sale

Thu, 12/02/2010 - 7:46am
The Associated Press

Omnicare Inc. said Thursday it is hoping to raise as much as $560 million by selling up to $575 million in convertible senior notes due in 2025.

The seller of prescription drugs to nursing homes and long-term care facilities said it priced an offering of $500 million in senior notes, which could bring Omnicare proceeds of as much as $486 million after fees and expenses are deducted. The underwriters of the offering will have an option to buy another $75 million in senior notes, which could boost the company's proceeds to $560 million.

Omnicare said it will use the proceeds to buy back as much as $525 million in convertible debentures that are due in 2035. The offering is expected to close Tuesday.

The company said Barclays Capital, Goldman Sachs, and J.P. Morgan Securities are underwriters of the offering. Wells Fargo Securities, Mitsubishi UFJ Securities, RBC Securities, and SunTrust Robinson Humphrey are co-managers.

Omnicare stock rose 32 cents to $22.54 in morning trading.

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