Owens & Minor repurchases 99.99% of 8½% notes due 2011

By Angela McDaniels

Seattle, April 7 - Owens & Minor Inc. repurchased 99.99% of its $200 million 8½% senior subordinated notes due 2011, according to a company news release.

The company began a tender offer and consent solicitation for the notes on March 21.

As of April 4, the consent deadline, holders of 99.99%, or $199,980,000, of the notes had tendered and given consent to amendments that eliminate substantially all of the covenants and certain events of default.

The tender offer expires at 11:59 p.m. ET on April 17.

The Richmond, Va., distributor of medical supplies will pay $1,050.23 for each $1,00 principal amount of notes, which includes a $30.00 consent payment for noteholders who consented by the consent deadline, plus accrued interest up to but excluding the purchase date.

The consideration is based on 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 company priced the tender offer consideration on April 4

Owens & Minor will use proceeds from a $200 million offering of 6.35% notes due 2016 and cash on hand to fund the tender offer and consent solicitation.

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.

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