Dallas, Texas 02/13/2014 (FINANCIALSTRENDS) – The $557 million market capped pharmacy and home care provider BioScrip Inc (NASDAQ:BIOS) announced on 6th February that it has managed to find buyers for its senior notes worth $200 million which are due in 2021 and attract a interest component of 8.875 percent.
On 11th February the firm issued and secured buyers for $200 million worth senior notes, on which it promises a interest payment of 8.875 percent on annualized basis. This interest component is payable twice a year during the 1st of august and 1st of February. The unsecured notes have been guaranteed by the firm and its subsidiaries in full. As per the clauses disclosed along with the notes issue, BioScrip Inc (NASDAQ:BIOS), in the event of redeeming the notes before the expiry of 15th February 2017 would make good the loss in interest to its notes owners by paying “make whole” premium, while if the notes are redeemed after 15th February 2017, predefined redemption prices would be paid.
The firm has also committed to repurchase the notes at 101 percent of the issue price in addition to interest payout in the event of the firm ownership changing hands. From the proceeds thus raised, close to $194.5 million is being used to repay outstanding principle and interest on its $75 million senior secured credit arrangement in addition to partly paying off the $150 million loan and its $250 million loan.
The $556 million market capped speciality health care provider has over the trailing 12 months accumulated net loss of $39.6 million as against annual revenue of $779 million. It has not paid out any divided to its investors in the trailing 12 months. At current price points it is trading 53 percent below its 52 week high price point of $17.62 and has provided negative returns of 27.52 to its investors over the past 12 months.