Owens & Minor tenders for 8½% notes

New York, March 21 - Owens & Minor, Inc. said it has started and cash tender offer and consent solicitation for its $200 million 8½% senior subordinated notes due 2011.

For each $1,000 principal amount of notes, the Richmond, Va., distributor of medical supplies is offering the present value of the notes' $1,042.50 redemption price on their first call date of July 15, 2006 plus interest up to that date, discounted using 50 basis points over the bid-side yield of the 7% U.S. Treasury note due July 15, 2006, minus accrued interest up to the date of purchase in the tender.

The total includes a $30.00 per $1,000 consent payment that will only be made to holders who tender with consents by the consent deadline of 5 p.m. ET on April 3. The offer expires at 11:59 p.m. ET on April 17.

Owens & Minor said it expects to fix pricing on the business day after the consent deadline.

The company will also pay accrued interest up to but excluding the purchase date.

In the consent solicitation, Owens & Minor is seeking to amend the note indenture to eliminate substantially all of the covenants and certain events of default.

Completion of the tender is subject to conditions including the receipt of proceeds from a new debt financing to fund the offer and the consent of holders of a majority of the notes.

Lehman Brothers Inc. is dealer manager and solicitation agent (800 438-3242 or call collect 212 528-7581). Georgeson Shareholder Communications, Inc. is information agent (800 868-1351, banks and brokerages call 212 440-9800). The depositary is SunTrust Bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.