By Paul A. Harris
Portland, Ore., March 23 – Owens & Minor, Inc. priced an upsized $600 million issue of eight-year senior notes (B2/B/BB-) at par to yield 6 5/8% on Wednesday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the 7% area.
The deal, which saw significant reverse inquiry, was heard to be playing to $3 billion of demand when books closed, a sellside source said.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included 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.
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.
| Issuer: | Owens & Minor, Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Issue: | Senior notes
|
| Maturity: | April 1, 2030
|
| Bookrunners: | 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
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 426 bps
|
| First call: | April 1, 2025 at 103.313
|
| Trade date: | March 23
|
| Settlement date: | March 29
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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