Owens & Minor talks $500 million eight-year notes at 6¾% area yield; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 23 – Owens & Minor, Inc. talked its $500 million offering of eight-year senior notes (B2/B/BB-) to yield in the 6¾% area, according to market sources.

Official talk comes slightly inside of initial guidance in the 7% area.

Orders for the notes amounted to three times deal size on Wednesday morning, according to a sellside source, who added that there is a decent amount of reverse inquiry in the deal.

Pricing is set to take place later on Wednesday.

J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC, Regions Securities LLC, Capital One Securities Inc., Citizens Capital Markets Inc. and KKR Capital Markets LLC are the bookrunners.

The Rule 144A and Regulation S for life notes come with three years of call protection.

The Richmond, Va.-based health care technology company plans to use the proceeds plus cash on hand and new term loans to finance the acquisition of Apria, Inc. and to repay Apria debt, with any remaining proceeds to be used for general corporate purposes.

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