Owens & Minor gets tenders for 99.9% of 8½% notes

By Jennifer Chiou

New York, April 18 - Owens & Minor Inc. said it accepted tenders from holders of $199.99 million or 99.99% of its $200 million of 8½% senior subordinated notes due 2011.

The response was up $10,000 from the previous announcement after the consent deadline on April 7.

The tender offer, which began on March 21, expired at 11:59 p.m. ET on April 17.

On April 4, the company said it received the required consents to amend the note indenture to eliminate substantially all of the covenants and certain events of default.

The Richmond, Va., distributor of medical supplies said it will pay $1,050.23 for each $1,000 principal amount of notes, which includes a $30.00 consent payment for noteholders who consented by the consent deadline, plus accrued interest up to but excluding the purchase date.

The consideration is based on the present value of the notes' $1,042.50 redemption price on their first call date of July 15, 2006 plus interest up to that date, discounted using 50 basis points over the bid-side yield of the 7% U.S. Treasury note due July 15, 2006, minus accrued interest up to the date of purchase in the tender.

The company will use proceeds from a $200 million offering of 6.35% notes due 2016 and cash on hand to fund the tender offer and consent solicitation.

Lehman Brothers Inc. is dealer manager and solicitation agent (800 438-3242 or call collect 212 528-7581). Georgeson Shareholder Communications, Inc. is information agent (800 868-1351, banks and brokerages call 212 440-9800). The depositary is SunTrust Bank.

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