Owens & Minor amends revolver, lifting commitment to $450 million

By Jennifer Chiou

New York, Sept. 18 – Owens & Minor, Inc. entered into an amendment to its credit agreement with Wells Fargo Bank, NA as administrative agent, bringing the lender commitments for revolving credit to $450 million from $350 million, according to an 8-K filing with the Securities and Exchange Commission.

The changes also include extending the termination date to Sept. 17, 2019 from June 5, 2017. There are two one-year extension options.

There is now a $200 million accordion, which is an increase from $150 million.

The filing said that the interest rate has been cut by up to 25 bps. Borrowings bear interest at Libor plus 112.5 bps to 200 bps, depending on a pricing grid and the better of debt to EBITDA or credit ratings.

The amendment also provides flexibility for the company to increase its debt to EBITDA ratio requirement for up to two four-quarter periods following the completion of material acquisitions.

Owens & Minor is a Mechanicsville, Va.-based provider of distribution, third-party logistics and other supply-chain management services to health care providers and suppliers of medical and surgical products.

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