New Issue: Owens & Minor sells $500 million eight-year notes at par to yield 4½%

By Paul A. Harris

Portland, Ore., March 3 – Owens & Minor, Inc. priced a $500 million issue of eight-year senior notes (B2/B-/BB-) at par to yield 4½% on Wednesday, according to market sources.

The yield printed at the tight end of the 4½% to 4¾% yield talk. Initial guidance was in the high 4% to 5% area.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Regions Securities LLC, Capital One Securities Inc., Citizens Capital Markets Inc. and KKR Capital Markets LLC.

The Richmond, Va.-based health care logistics company plans to use the proceeds plus borrowings under its new revolver and its amended securitization facility to repay its term loan B and existing revolver, with any remaining proceeds to be used for general corporate purposes.

Issuer:	Owens & Minor, Inc.
Amount:	$500 million
Maturity:	March 31, 2029
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Regions Securities LLC, Capital One Securities Inc., Citizens Capital Markets Inc. and KKR Capital Markets LLC
Coupon:	4½%
Price:	Par
Yield:	4½%
Spread:	324 bps
First call:	March 31, 2024 at 102.25
Trade date:	March 3
Settlement date:	March 10
Ratings:	Moody's: B2
	S&P: B-
	Fitch: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	4½% to 4¾%
Marketing:	Roadshow

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