Lincare Holdings Inc. Prices $500 Million Convertible Senior Debenture...( CLEARWATER Fla. Oct. 25 /- Lincar...),Health

CLEARWATER, Fla., Oct. 25 /PRNewswire-FirstCall/ -- Lincare Holdings Inc. (Nasdaq: LNCR) today announced the pricing of $250 million principal amount of convertible senior debentures due 2037 - Series A (the "Series A Debentures") and $250 million principal amount of convertible senior debentures due 2037 - Series B (the "Series B Debentures" and together with the Series A Debentures, the "Debentures"), in each case to be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Lincare granted the initial purchasers of the Debentures an option to purchase an additional $25 million aggregate principal amount of the Series A Debentures and an option to purchase an additional $25 million aggregate principal amount of the Series B Debentures, in each case, solely to cover overallotments, if any.

The Debentures will pay interest semiannually at a rate of 2.75 percent per year. The Debentures will be Lincare's unsecured and unsubordinated obligations and will be convertible under specified circumstances based upon a base conversion rate, which, under certain circumstances, will be increased pursuant to a formula that is subject to a maximum conversion rate. Upon conversion, holders of the Debentures will receive cash up to the principal amount, and any excess conversion value will be delivered in shares of Lincare common stock or in a combination of cash and shares of common stock, at Lincare's option. The initial base conversion rate for the Debentures is 19.5044 shares of Lincare common stock per $1,000 principal amount of Debentures, equivalent to an initial base conversion price of approximately $51.27 per share. In addition, if a
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