RICHMOND, Va. – Owens & Minor has launched a private offering of $500 million aggregate principal amount of senior notes due 2030 subject to customary and market conditions.
The company plans to use the net proceeds of the offering, together with cash on hand and proceeds from expected borrowings under one or more new term loans, to finance its acquisition of Apria Healthcare and other transactions contemplated by the agreement, as well as to repay Apria debt and related fees and expenses. It will use any remaining net proceeds for general corporate purposes.
Unless the acquisition is consummated concurrently with or promptly following the closing of the offering, Owens & Minor will deposit the gross proceeds from the offering into a segregated escrow account until the date of certain escrow release conditions, including the consummation of the acquisition, have been satisfied.
The company’s acquisition of Apria is subject to customary closing conditions, including the adoption of the acquisition agreement by the affirmative vote of holders of a majority of the outstanding shares of Apria common stock.