Owens & Minor (NYSE:OMI) announced today that it launched a private offering worth $500 million in senior notes.
Richmond, Virginia-based Owens & Minor’s notes — due in 2030 — will provide proceeds to finance the company’s acquisition of Apria.
According to a news release, unless the acquisition is consummated concurrently with or promptly following the closing of the offering, Owens & Minor will deposit proceeds into a segregated escrow account until the date that certain conditions have been satisfied.
Upon the closing of the offering or, if applicable, upon satisfaction of the escrow conditions, Owens & Minor will use the proceeds with cash on hand and expected borrowings under one or more new term loans to finance the Apria acquisition and other transactions contemplated by the acquisition agreement.
Proceeds may also be used to repay Apria debt and to pay related fees and expenses. Any remaining proceeds will be used for general purposes.