Owens & Minor expected to bring $500 million notes March 14 week; early price thoughts 6%-plus

By Paul A. Harris

Portland, Ore., March 11 – Owens & Minor Inc. is expected to bring a $500 million offering of notes with a maturity of eight years or less during the March 14 week, according to a sellside source.

Pending market conditions, the deal could launch as early as Monday, the source said, noting that the Owens & Minor 4½% senior notes due March 2029 currently trade with a 6% yield to worst, implying that the new unsecured notes would likely come with a yield greater than 6% but less than 7%.

J.P. Morgan Securities LLC is expected to lead the offering.

The company undertook syndication of a $1.2 billion term loan (Ba3/BB-/BB+) on Thursday, with commitments due on March 22.

Proceeds will be used to help fund the acquisition of Indianapolis-based home health care equipment and services provider Apria Inc. in a transaction valued at $1.6 billion. The acquisition is expected to close during the first half of 2022.

Owens & Minor is a Richmond, Va.-based health care solutions company.

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