NEW YORK – Laboratory Corporation of America said on Monday that it has priced its $1.05 billion offering of senior notes.
The offering consists of two tranches, one, a $400 million aggregate principal amount of 2.3 percent senior notes due 2024, and the other a $650 million aggregate principal amount of 2.95 percent senior notes due 2029.
The notes will bear interest from November 25, 2019, which will be paid semi-annually on June 1 and December 1, starting June 1, 2020. The offer is expected to close on November 25, 2019.
The company said it plans to use proceeds from the offering for general corporate purposes including purchase, redemption, or repayment at maturity of outstanding 2.625 percent senior notes, repayment of outstanding loans, and to fund a cash tender offer for up to $300 million in senior notes.
The joint book-running managers for the offering are BofA Securities, US Bancorp, and Wells Fargo Securities.
Additionally, LabCorp said on Tuesday that it plans to redeem all of its outstanding Zero Coupon Convertible Subordinated Notes due 2021 for cash on December 19, 2019 at a price of $966.20 per $1000 principal amount of the notes at maturity plus accrued and unpaid contingent cash interest to the redemption date.
The company's announcement that it plans to redeem the notes means they are convertible into cash and LabCorp common stock before the close of business on December 17, 2019 at the conversion rate of 13.4108 shares of Common Stock per $1,000 principal amount of the zero coupon notes at maturity.