By Paul A. Harris
St. Louis, April 4 - Owens & Minor, Inc. priced a split-rated $200 million issue of 6.35% 10-year senior notes (Ba2/BBB-/BBB-) at 99.939 to yield 6.358% on Thursday, according to a market source.
The notes priced at a 150 basis point spread to Treasuries, on the tight end of the Treasuries plus 150 to 155 basis point price talk.
High-yield accounts took part in the deal.
Lehman Brothers ran the books for the registered issue. The senior co-managers were Banc of America Securities LLC, Citigroup and SunTrust Robinson Humphrey. The co-managers were Goldman Sachs, JP Morgan, KeyBanc Capital Markets and Wachovia Securities.
Proceeds, together with cash on hand, will be used to repay the company's existing 8½% notes due July 15, 2011.
The company is a Mechanicsville, Va.-based distributor of medical and surgical supplies and health care supply-chain management services.
| Issuer: | Owens & Minor, Inc.
|
| Face amount: | $200 million
|
| Proceeds: | $199.878 million
|
| Maturity: | April 15, 2016
|
| Security description: | Senior notes
|
| Bookrunner: | Lehman Brothers
|
| Senior co-managers: | Banc of America Securities LLC, Citigroup, SunTrust Robinson Humphrey
|
| Co-managers: | Goldman Sachs, JP Morgan, KeyBanc Capital Markets, Wachovia Securities
|
| Coupon: | 6.35%
|
| Price: | 99.939
|
| Yield: | 6.358%
|
| Spread: | 150 bps
|
| Call: | Callable at any time at a make-whole call of Treasuries plus 25 bps
|
| Trade date: | April 4
|
| Settlement date: | April 7
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 150-155 bps
|
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