Owens & Minor flexes $500 million term loan B to Libor plus 450 bps

By Sara Rosenberg

New York, May 2 – Owens & Minor Inc. increased pricing on its $500 million seven-year term loan B (B1/BB) to Libor plus 450 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 98 from 99, the 101 soft call protection was extended to one year from six months and a maximum total leverage ratio covenant was added to the previously covenant-light loan, the source said.

The term loan still has a 0% Libor floor.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the arrangers on the deal. Co-managers include MUFG, PNC and US Bank.

Recommitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with a new term loan A to fund the recently completed acquisition of the surgical and infection prevention business of Halyard Health Inc.

Owens & Minor is a Mechanicsville, Va.-based health care solutions company.

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