Owens & Minor trims term B to $600 million, adds $500 million term A

By Sara Rosenberg

New York, March 23 – Owens & Minor Inc. downsized its seven-year term loan B to $600 million from $1.2 billion and added a $500 million term loan A, according to a market source.

Furthermore, the 101 soft call protection on the term loan B was extended to one year from six months, the source said.

Pricing on the term loan B remained at SOFR+10 basis points CSA plus 375 bps with a 0.5% floor and an original issue discount of 98.5.

The term loan A is priced at SOFR plus 250 bps, the source added.

JPMorgan Chase Bank, BofA Securities Inc., Citigroup Global Markets Inc., PNC Capital Markets, Regions Securities, Capital One, Citizens and KKR Capital Markets are the leads on the deal.

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.

Other funds for the transaction will come from $600 million of senior notes, which were upsized from $500 million with the term loan B downsizing.

Closing is subject to 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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