S&P assigns Owens & Minor notes B

S&P said it assigned B issue-level and 6 recovery ratings to Owens & Minor Inc.'s planned $500 million of unsecured notes due 2030. The 6 recovery rating indicates an expectation for average (0%-10%; rounded estimate: 0%) recovery in default.

The company will use the proceeds along with the anticipated proceeds from a $1.2 billion secured term loan, to fund its acquisition of Apria Inc. and pay related fees and expenses.

The company's planned capital structure will comprise an unrated $450 million accounts receivable facility, a $450 million revolver due 2027, a $1.2 billion term loan due 2029, $246 million of 4 3/8% senior secured notes maturing in 2024, $500 million of 4½% unsecured notes maturing in 2029 and $500 million of new notes due 2030. The outstanding notes are also rated B with a 6 recovery rating.

The outlook is stable.

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