NEW YORK (360Dx) – Laboratory Corporation of America reported in an 8-K filing with the US Securities and Exchange Commission Friday that it has amended and restated its existing senior revolving credit facility.
The credit facility has been restated and amended to consist of a five-year revolving facility in the principal amount of up to $1.0 billion with the ability to increase the facility by up to $350 million. The credit facility also provides for one subfacility of up to $100 million for swingline borrowing, and a second subfacility of up to $150 million for issuing letters of credit.
The amended and restated revolving credit facility can be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, acquisitions and other investments, and repayment of debt. Bank of America is acting as swing line lender, letter of credit issuer, and administrative agent for a group of financial institutions providing the revolving credit facility.
In the same filing, LabCorp also reported that it has entered into a five year term-loan credit facility in the amount of $750 million. The entire $750 million principal amount of the term loan credit facility was advanced Friday with approximately $700 million of the proceeds applied to repaying existing outstanding loans under a prior senior revolving credit facility entered into in December 2014.
Additionally, LabCorp said that it entered into a third amendment to its December 2014 five-year term loan facility, with Bank of America as administrative agent. The third amendment does not change the pricing terms of the maturity of the existing five-year term loan credit facility, the firm said, but it implements certain covenant and technical amendments to make the credit facility consistent with corresponding provisions applicable to the new credit facilities.