Owens & Minor Announces Launch of Senior Secured Notes Offering
Owens & Minor (NYSE:OMI) has announced a private offering of $600 million senior secured notes due 2030. The proceeds will be used to finance the previously announced acquisition of Rotech Healthcare Holdings, along with cash on hand and borrowings from a new senior secured incremental term loan B facility.
The notes will be guaranteed by certain domestic subsidiaries and secured by first-priority liens on company assets. Initially, if issued before the Rotech acquisition closes, the notes will only be secured by the escrow account holding the proceeds. The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
The funds will cover the acquisition costs, repayment of Rotech debt, related fees and expenses, with remaining proceeds for working capital. The offering is not contingent on completing the Rotech acquisition, which may occur after the offering closes.
Owens & Minor (NYSE:OMI) ha annunciato un'offerta privata di 600 milioni di dollari in note senior garantite con scadenza nel 2030. I proventi saranno utilizzati per finanziare l'acquisizione precedentemente annunciata di Rotech Healthcare Holdings, insieme a liquidità disponibile e prestiti da una nuova struttura di prestito senior garantito incrementale di tipo B.
Le note saranno garantite da alcune sussidiarie nazionali e garantite da diritti di primo grado sugli attivi dell'azienda. Inizialmente, se emesse prima della chiusura dell'acquisizione di Rotech, le note saranno garantite solo dal conto escrow che detiene i proventi. L'offerta è rivolta a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S.
I fondi copriranno i costi di acquisizione, il rimborso del debito di Rotech, le spese e i costi correlati, con i proventi rimanenti destinati al capitale circolante. L'offerta non è subordinata al completamento dell'acquisizione di Rotech, che potrebbe avvenire dopo la chiusura dell'offerta.
Owens & Minor (NYSE:OMI) ha anunciado una oferta privada de 600 millones de dólares en notas senior garantizadas con vencimiento en 2030. Los ingresos se utilizarán para financiar la adquisición previamente anunciada de Rotech Healthcare Holdings, junto con efectivo disponible y préstamos de una nueva instalación de préstamo senior garantizado incremental tipo B.
Las notas estarán garantizadas por ciertas subsidiarias nacionales y aseguradas por derechos de primer grado sobre los activos de la empresa. Inicialmente, si se emiten antes de que se cierre la adquisición de Rotech, las notas solo estarán aseguradas por la cuenta de depósito que contiene los ingresos. La oferta está destinada a compradores institucionales calificados según la Regla 144A y a personas no estadounidenses bajo la Regulación S.
Los fondos cubrirán los costos de adquisición, el reembolso de la deuda de Rotech, las tarifas y gastos relacionados, con los ingresos restantes destinados al capital de trabajo. La oferta no depende de la finalización de la adquisición de Rotech, que puede ocurrir después del cierre de la oferta.
오웬스 앤 마이너 (NYSE:OMI)가 20230년 만기 6억 달러 규모의 선순위 담보 노트에 대한 사모 발행을 발표했습니다. 수익금은 로텍 헬스케어 홀딩스의 이전에 발표된 인수 자금을 조달하는 데 사용되며, 보유 현금 및 신규 선순위 담보 증가형 B 대출에서 차입한 자금도 포함됩니다.
노트는 특정 국내 자회사가 보증하며 회사 자산에 대한 1순위 담보권으로 확보됩니다. 초기에는 로텍 인수 계약이 종료되기 전에 발행되는 경우 노트는 수익금을 보유하는 에스크로 계좌에만 담보됩니다. 이 제안은 144A 규칙에 따라 자격을 갖춘 기관 투자자 및 S 규정에 따라 비미국인에게 제공됩니다.
자금은 인수 비용, 로텍 부채 상환, 관련 수수료 및 비용을 충당하며, 나머지 수익금은 운영 자본에 사용됩니다. 이 제안은 로텍 인수 완료에 의존하지 않으며, 이는 제안이 종료된 후에 발생할 수 있습니다.
Owens & Minor (NYSE:OMI) a annoncé une offre privée de 600 millions de dollars d'obligations senior sécurisées arrivant à échéance en 2030. Les produits seront utilisés pour financer l'acquisition précédemment annoncée de Rotech Healthcare Holdings, ainsi que des liquidités disponibles et des emprunts d'un nouveau prêt senior sécurisé supplémentaire de type B.
Les obligations seront garanties par certaines filiales nationales et sécurisées par des privilèges de premier rang sur les actifs de l'entreprise. Initialement, si elles sont émises avant la clôture de l'acquisition de Rotech, les obligations seront uniquement sécurisées par le compte séquestre détenant les produits. L'offre s'adresse aux acheteurs institutionnels qualifiés conformément à la règle 144A et aux personnes non américaines en vertu de la réglementation S.
Les fonds couvriront les coûts d'acquisition, le remboursement de la dette de Rotech, les frais et dépenses connexes, les produits restants étant destinés au fonds de roulement. L'offre n'est pas conditionnée à la réalisation de l'acquisition de Rotech, qui peut avoir lieu après la clôture de l'offre.
Owens & Minor (NYSE:OMI) hat eine private Platzierung von 600 Millionen US-Dollar an senior gesicherten Anleihen mit Fälligkeit 2030 angekündigt. Die Erlöse werden verwendet, um die zuvor angekündigte Übernahme von Rotech Healthcare Holdings zu finanzieren, zusammen mit verfügbaren Barmitteln und Darlehen aus einer neuen senior gesicherten zusätzlichen Term Credit Facility B.
Die Anleihen werden von bestimmten inländischen Tochtergesellschaften garantiert und durch erste Grundpfandrechte auf die Vermögenswerte des Unternehmens gesichert. Zunächst, wenn sie vor Abschluss der Rotech-Übernahme ausgegeben werden, sind die Anleihen nur durch das Treuhandkonto gesichert, das die Erlöse hält. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß Regulation S.
Die Mittel decken die Übernahmekosten, die Rückzahlung von Rotech-Schulden, damit verbundene Gebühren und Ausgaben, wobei die verbleibenden Erlöse für das Betriebskapital verwendet werden. Das Angebot ist nicht von dem Abschluss der Rotech-Übernahme abhängig, die möglicherweise nach Abschluss des Angebots erfolgt.
- Securing $600 million in additional financing through senior secured notes
- Strategic expansion through Rotech Healthcare acquisition
- First-priority security interest protecting noteholders
- Increased debt burden with $600 million new notes
- Additional leverage from new term loan B facility
- Potential dilution of security interest if acquisition doesn't close promptly
Insights
Owens & Minor's $600 million senior secured notes offering represents a significant leverage event that warrants close investor attention. The debt issuance is primarily intended to finance the acquisition of Rotech Healthcare Holdings, including repayment of Rotech's existing debt and related transaction expenses.
What's particularly notable is the scale of this debt offering relative to OMI's current
The notes' structure includes important investor protections - they'll be secured by first-priority liens on the same assets securing the company's existing credit facilities. The escrow arrangement provides additional protection by ensuring proceeds remain segregated until the acquisition closes.
While this acquisition could potentially expand OMI's healthcare services portfolio, the financing structure raises questions about the company's debt service capacity post-acquisition. The combined financing approach - senior secured notes plus a new incremental term loan B facility - suggests a highly leveraged transaction with significant long-term financial implications.
Without visibility into Rotech's financial profile or expected synergies, it's premature to determine whether this leverage-intensive acquisition strategy will ultimately enhance or impair shareholder value in the long term. The substantial debt commitment represents both a strategic opportunity and a financial risk factor that will shape the company's capital allocation options for years to come.
Unless the previously announced acquisition (the “Acquisition”) of Rotech Healthcare Holdings Inc. (“Rotech”) is consummated concurrently with or promptly following the closing of the Offering, the Company will deposit the gross proceeds from the Offering into a segregated escrow account until the date that certain escrow release conditions, including the consummation of the Acquisition, have been satisfied. The consummation of the Acquisition is subject to customary closing conditions.
The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by the Company and certain domestic subsidiaries of the Company that guarantee the Company’s existing term loan facility and revolving credit facility. If the issue date occurs prior to the closing of the Acquisition (and subject to applicable grace periods), the Notes will be secured only by a first-priority security interest in the escrow account and all funds on deposit therein. Following the completion of the Acquisition, the Notes and related guarantees will be secured on a first-priority basis by liens on the same assets that secure the Company’s existing term loan facility and revolving credit facility.
Upon the closing of the Offering or, if applicable, upon satisfaction of the escrow conditions, the Company intends to use the net proceeds of the Offering, together with cash on hand and expected borrowings under a new senior secured incremental term loan B facility to finance the consummation of the Acquisition and the other transactions contemplated by the related merger agreement, including the repayment of Rotech debt and to pay Acquisition related fees and expenses. Any remaining net proceeds will be used for working capital and general corporate purposes.
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in
A confidential offering memorandum for the Offering is being made available to such eligible persons. The Offering is being conducted in accordance with the terms and subject to the conditions set forth in such confidential offering memorandum.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer, or solicitation to buy, if at all, will be made only by means of a confidential offering memorandum. The Offering is not conditioned on the consummation of the Acquisition, which, if consummated, may occur subsequent to the closing of the Offering. This press release does not constitute a notice of repayment of any outstanding indebtedness of Rotech. The terms and conditions of the incremental term loan B facility have not been finalized and are therefore subject to change. The completion of the Offering is not conditioned upon our entering into the incremental term loan B facility, and our entering into such facility is not conditioned upon completion of the Offering.
About Owens & Minor
Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria ®, Byram® and HALYARD* , have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™.
*Registered Trademark or Trademark of O&M Halyard or its affiliates.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the Company’s expectations regarding the proposed Acquisition and the future performance and financial results of the Company’s business and other non-historical statements. Some of these statements can be identified by terms and phrases such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, including statements relating to the Acquisition, the Offering and the related financing for the Acquisition. The Company cautions readers of this communication that such “forward looking statements,” wherever they occur in this press release or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the “forward-looking statements.”
Factors that could cause the Company’s actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; the inability to complete the proposed Acquisition due to the failure to satisfy other conditions to completion of the proposed Acquisition, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed Acquisition; risks related to disruption of management’s attention from the Company’s ongoing business operations due to the proposed Acquisition; the effect of the announcement of the proposed Acquisition on the Company’s relationships with its customers, suppliers and other third parties, as well as its operating results and business generally; the risk that the proposed Acquisition will not be consummated in a timely manner; exceeding the expected costs of the proposed Acquisition; the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; and the risk that the combined company may be unable to achieve expected synergies or that it may take longer than expected to achieve those synergies.
Additional factors that could cause the Company’s actual outcomes or results to differ materially from those described in these forward-looking statements can be found in the “Risk Factors” sections of the Company’s most recent Annual Report on Form 10-K for the period ended December 31, 2024, as such factors may be further updated from time to time in the Company’s other filings with the
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Media contact
Stacy Law
Media@owens-minor.com
Source: Owens & Minor, Inc.
FAQ
What is the size and purpose of Owens & Minor's (OMI) new senior secured notes offering?
How will the OMI notes be secured and guaranteed?
Who can participate in Owens & Minor's (OMI) notes offering?
Is OMI's notes offering dependent on the Rotech acquisition completion?
