Owens & Minor to launch $1.2 billion term loan B on Thursday

By Sara Rosenberg

New York, March 9 – Owens & Minor Inc. is set to hold a lender call at 1:30 p.m. ET on Thursday to launch a $1.2 billion seven-year term loan B (//BB+), according to a market source.

JPMorgan Chase Bank is the lead on the deal.

Price talk on the term loan is SOFR+10 basis points CSA plus 375 bps with a 0.5% floor and an original issue discount of 98.5, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 22, the source added.

Proceeds will be used to help fund the acquisition of Apria Inc. for $37.50 in cash per share of common stock, representing an equity value of $1.45 billion and a total transaction value of $1.6 billion, including the assumption of debt and cash.

Closing is expected in the first half of this year, subject to regulatory approvals, Apria stockholder approval and other customary conditions.

Owens & Minor is a Richmond, Va.-based health care solutions company. Apria is an Indianapolis-based provider of integrated home health care equipment and related services.

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