Owens & Minor: Owens & Minor upsizes offering to $1B

RICHMOND, Va. - Owens & Minor has upsized its recently announced private offering to from $600 million to $1 billion aggregate principal amount of senior secured notes. The notes will bear interest at the rate of 10% per year and will mature April 15, 20230. The proceeds will be used to finance its acquisition of Rotech Healthcare, along with cash on hand and expected borrowings under a new senior secured incremental term loan B facility. Proceeds will also be used for 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 will be fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by the company and certain of its domestic subsidiaries 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. The offering is expected to close April 4.