Owens & Minor decreases revolver to $400 million, edits covenants

By Wendy Van Sickle

Columbus, Ohio, Feb. 19 – Owens & Minor Inc. amended and restated its credit agreement dated July 27, 2017 to provide for a $400 million revolving credit facility, reduced from $600 million, according to an 8-K filing with the Securities and Exchange Commission.

The Feb. 12 amendment also changes the leverage and interest coverage financial covenants through the maturity of the credit agreement; adds an anti-cash hoarding covenant; amends some negative covenants, including a reduction of some baskets for restricted payments of junior debt, asset sales and investments; and removes the incremental facility.

Additionally, Wells Fargo Bank, NA resigned as administrative agent, succeeded by Bank of America, NA, which was also the lead arranger and bookrunner.

Borrowings bear interest at Libor plus a margin of either 350 basis points or 200 bps, depending on whether the consolidated total leverage ratio is less than 4.5x.

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

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