Owens & Minor launches $600M offering
By HME News Staff
Updated 10:06 AM CDT, Thu March 27, 2025
RICHMOND, Va. – Owens & Minor has launched a private offering of $600 million aggregate principal amount of senior secured notes, the proceeds of which 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, due 2030, 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. 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.
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