May 13 2010
Omnicare, Inc. (NYSE: OCR) (the "Company") today announced that it intends to offer $400 million aggregate principal amount of senior subordinated notes due 2020, pursuant to a preliminary prospectus supplement to be filed with the Securities and Exchange Commission under the Company's shelf registration statement.
The Company expects to use the net proceeds from the offering of the senior subordinated notes to repurchase its 6.75% Senior Subordinated Notes due 2013 pursuant to a tender offer and related consent solicitation which the Company commenced on May 3, 2010. The consummation of the tender offer and consent solicitation is conditioned on the completion of the offering of senior subordinated notes. The Company also intends to use a portion of the net proceeds from the offering to repay its existing senior credit facility and for general corporate purposes, which may include the repurchase of shares of its common stock from time to time. In connection with the offering, the Company intends to refinance its existing revolving credit facility with a new $400 million revolving credit facility, expected to be secured by certain accounts receivable.