LabCorp Prices $500,000,000 in 2.625% Senior Notes Due 2020, $500,000,000 in 3.200% Senior Notes Due 2022, $1,000,000,000 in ...
January 21 2015 - 7:41PM
Business Wire
Laboratory Corporation of America® Holdings (LabCorp®) (NYSE:
LH) announced today that it has priced its offering of $2.9 billion
in senior notes. The offering consists of four tranches:
$500,000,000 aggregate principal amount of 2.625% Senior Notes due
2020 (the “2020 Notes”), $500,000,000 aggregate principal amount of
3.200% Senior Notes due 2022 (the “2022 Notes”), $1,000,000,000
aggregate principal amount of 3.600% Senior Notes due 2025 (the
“2025 Notes”) and $900,000,000 aggregate principal amount of 4.700%
Senior Notes due 2045 (together with the 2020 Notes, the 2022 Notes
and the 2025 Notes, the “Notes”). The Notes will bear interest
from January 30, 2015, payable semi-annually on February 1 and
August 1, commencing on August 1, 2015. The closing of the
offering is expected to occur on January 30, 2015, subject to the
satisfaction of customary closing conditions. The Notes will be
senior unsecured obligations and will rank equally with LabCorp’s
existing and future senior unsecured debt.
LabCorp intends to use the net proceeds of the Notes offering to
pay a portion of the cash consideration and the fees and expenses
in connection with its pending acquisition of Covance Inc. If the
proposed acquisition is terminated or does not close on or prior to
June 30, 2015, LabCorp will redeem the Notes at 101% of the
principal amount plus accrued and unpaid interest.
The joint book-running managers for the offering are Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo
Securities, LLC and Credit Suisse Securities (USA) LLC. Mitsubishi
UFJ Securities (USA), Inc., Barclays Capital Inc., KeyBanc Capital
Markets Inc., PNC Capital Markets LLC, TD Securities (USA) LLC,
U.S. Bancorp Investments, Inc., Credit Agricole Securities (USA)
Inc., BNY Mellon Capital Markets, LLC and Fifth Third Securities,
Inc. are acting as co-managers.
The offering will be made pursuant to an effective shelf
registration statement on Form S-3 filed with the Securities and
Exchange Commission. A copy of the prospectus and related
prospectus supplement may be obtained from Merrill Lynch, Pierce,
Fenner & Smith Incorporated by calling toll-free
1-800-294-1322, from Wells Fargo Securities, LLC by calling
toll-free 1-800-645-3751 or from Credit Suisse Securities (USA) LLC
by calling toll-free 1-800-221-1037.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes or any other securities,
nor shall there be any sale of these securities in any jurisdiction
in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such jurisdiction. The offering of these securities may be made
only by means of the prospectus supplement and the accompanying
prospectus.
About LabCorp®
Laboratory Corporation of America® Holdings, an S&P 500
company, is a pioneer in commercializing new diagnostic
technologies and the first in its industry to embrace genomic
testing. With annual revenues of $5.8 billion in 2013, over 34,000
employees worldwide, and more than 220,000 clients, LabCorp offers
more than 4,000 tests ranging from routine blood analyses to
reproductive genetics to companion diagnostics. LabCorp furthers
its scientific expertise and innovative clinical testing technology
through its LabCorp Specialty Testing Group: The Center for
Molecular Biology and Pathology, National Genetics Institute,
ViroMed Laboratories, Inc, The Center for Esoteric Testing,
Litholink Corporation, Integrated Genetics, Integrated Oncology,
Dianon Pathology, Monogram Biosciences, Inc, Colorado Coagulation,
Cellmark Forensics, MedTox, and Endocrine Sciences. LabCorp
conducts clinical trials testing through its LabCorp Clinical
Trials division. LabCorp clients include physicians, government
agencies, managed care organizations, hospitals, clinical labs, and
pharmaceutical companies.
This press release contains forward-looking
statements including with respect to the pending acquisition of
Covance Inc. and the expected offering of Notes. Each of the
forward-looking statements is subject to change based on various
important factors, including without limitation, competitive
actions in the marketplace and adverse actions of governmental and
other third-party payers. Actual results could differ materially
from those suggested by these forward-looking statements. Further
information on potential factors that could affect LabCorp’s
operating and financial results is included in the Company’s Form
10-K for the year ended December 31, 2013, including under the
heading risk factors, and in the Company’s other filings with the
SEC. The information in this press release should be read in
conjunction with a review of the Company’s filings with the SEC
including the information in the section of the Company’s Form 10-K
for the year ended December 31, 2013 and subsequent Forms 10-Q
under the heading MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Laboratory Corporation of America HoldingsStephen Anderson,
336-436-5076www.labcorp.com
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