DUBLIN, Ohio, July 20 /PRNewswire-FirstCall/ -- Cardinal Health, Inc. , the leading provider of products and services supporting the health care industry, today announced that its wholly owned subsidiary ALARIS Medical Systems, Inc. established the reference yield for ALARIS' previously announced tender offer for any and all of its outstanding $175,000,000 aggregate principal amount of 7.25% Senior Subordinated Notes due 2011 (CUSIP No. 011638AD5, the "Notes") at 2.863%. Assuming a payment date of August 4th, 2004, the total consideration for each $1,000 principal amount of Notes tendered and accepted for payment pursuant to the tender offer will be $1,116.18, plus accrued interest up to, but not including, the payment date.
As more fully described in ALARIS' Offer to Purchase and Consent Solicitation Statement dated July 7, 2004 (the "Offer to Purchase"), the "total consideration" for each $1,000 principal amount of Notes is equal to the sum of (x) 35% of the "equity claw-back price" and (y) 65% of the "fixed spread price." The fixed spread price is equivalent to the yield to July 1, 2007 (the first date on which all Notes may be redeemed at ALARIS' option) equal to the sum of (a) the reference yield and (b) a fixed spread of 0.50% plus accrued interest on the Note up to, but not including, the payment date. The portion of the total consideration based on the equity claw-back price is equal to $1,072.50 per $1,000 of Notes tendered. The amount of the total consideration includes a consent payment of $30 per $1,000 principal amount of Notes that will be paid only to holders that validly tender (and do not validly withdraw) their Notes before 12 midnight, New York City time, on July 20th, 2004.
The tender offer is being made upon the terms and subject to conditions set forth in the Offer to Purchase. Please refer to that document for additional information. The tender offer is scheduled to expire at 12 midnight, New York City time, on August 3rd, 2004, unless extended.
Questions and requests for assistance or additional offer materials may be directed to MacKenzie Partners, Inc., 105 Madison Avenue, New York, New York 10016, Holders Call Toll-Free: (800) 322-2885, Banks and Brokers Call Collect: (212) 929-5500.
This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to any securities. The offer is being made solely by the Offer to Purchase.
About Cardinal Health
Cardinal Health, Inc. ( http://www.cardinal.com/ ) is the leading provider of products and services supporting the health care industry. Cardinal Health develops, manufactures, packages and markets products for patient care; develops drug-delivery technologies; distributes pharmaceuticals, medical- surgical and laboratory supplies; and offers consulting and other services that improve quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health employs more than 50,000 people on six continents and produces annual revenues of more than $50 billion. Cardinal Health is ranked No. 17 on the 2004 Fortune 500 list and was named one of the best U.S. companies by Forbes magazine for 2004.
Cardinal Health, Inc.