Owens & Minor Announces Pricing of New Offering of $550 Million of Senior Notes
September 11 2014 - 6:28PM
Business Wire
Owens & Minor, Inc. (NYSE: OMI) announced today it has
priced its underwritten public offering of $275 million of 3.875%
Senior Notes due 2021 and $275 million of 4.375% Senior Notes due
2024. Estimated net proceeds from this offering will be
approximately $542.7 million, after deducting the underwriting
discount and estimated offering expenses. The offering is expected
to settle on September 16, 2014, subject to customary closing
conditions.
The new notes are general senior unsecured obligations of Owens
& Minor, will pay interest semi-annually and will be guaranteed
on a senior unsecured basis by Owens & Minor Distribution, Inc.
and Owens & Minor Medical, Inc., both wholly-owned subsidiaries
of the company. Owens & Minor intends to use the proceeds from
the offering to fund its previously announced acquisition of
Medical Action Industries Inc., to fund the redemption of all of
its outstanding 6.35% Senior Notes due 2016 and for other general
corporate purposes.
The joint book-running managers for the offering are J.P. Morgan
Securities LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated and Wells Fargo Securities, LLC. The senior
co-managers for the offering are SunTrust Robinson Humphrey, Inc.
and U.S. Bancorp Investments, Inc. The co-managers for the offering
are BB&T Capital Markets, a division of BB&T Securities,
LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC.
The offering is being made pursuant to an effective shelf
registration statement previously filed by Owens & Minor with
the Securities and Exchange Commission (SEC) and only by means of a
prospectus supplement and attached prospectus. Copies of these
documents can be obtained by contacting J.P. Morgan Securities LLC
at 383 Madison Avenue, 3rd Floor, New York, New York 10179,
Attention: Investment Grade Syndicate Desk, or by telephone at
1-212-834-4533, Merrill Lynch, Pierce, Fenner & Smith
Incorporated at 222 Broadway, 11th Floor, New York, New York 10038,
Attention: Prospectus Department, or by telephone at
1-800-294-1322; or Wells Fargo Securities, LLC, 1525 West W.T.
Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention:
Capital Markets Client Support, or by telephone at 1-800-326-5897.
Electronic copies of the prospectus supplement and the attached
prospectus are also available on the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell nor the
solicitation of an offer to buy any of these securities, nor shall
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
This press release does not constitute a notice of redemption
for or an obligation to issue a notice of redemption for the 2016
notes.
Safe Harbor Statement
Except for historical information, the matters discussed in this
press release may constitute forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those projected. These risk factors are
discussed in reports filed by Owens & Minor with the SEC. All
of this information is available at www.owens-minor.com.
Owens & Minor assumes no obligation, and expressly disclaims
any such obligation, to update or alter information, whether as a
result of new information, future events, or otherwise, other than
as required by law.
Owens & Minor, Inc.
(NYSE:OMI) is a leading healthcare logistics company dedicated to
Connecting the World of Medical Products to the Point of CareTM by
providing vital supply chain services to healthcare providers and
manufacturers of healthcare products. Owens & Minor provides
logistics services across the spectrum of medical products from
disposable medical supplies to devices and implants. With logistics
platforms strategically located in the United States and Europe,
Owens & Minor serves markets where three quarters of global
healthcare spending occurs. Owens & Minor’s customers span the
healthcare market from independent hospitals to large integrated
healthcare networks, as well as group purchasing organizations,
healthcare products manufacturers and the federal government. A
FORTUNE 500 company, Owens & Minor is headquartered in
Richmond, Virginia, and has annualized revenues exceeding $9
billion. For more information about Owens & Minor, visit the
company website at www.owens-minor.com.
Owens & Minor, Inc.Trudi Allcott, 804-723-7555Director,
Investor & Media Relationstruitt.allcott@owens-minor.comorChuck
Graves, 804-723-7556Director, Finance & Investor
Relationschuck.graves@owens-minor.com
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