LabCorp starts net share settlement exchange offer for LYONs due 2021

By Jennifer Chiou

New York, Sept. 22 - Laboratory Corp. of America Holdings said it began an exchange offer for its Liquid Yield Option Notes due 2021.

The company will issue new zero-coupon convertible subordinated notes due Sept. 11, 2021 and will also pay an exchange fee of $2.50 per $1,000 principal amount at maturity of LYONs.

LabCorp said that the new notes will add a net share settlement feature, which will allow the company to use cash for a portion of its obligation due upon conversion. The company added that this will reduce the likelihood and extent of share dilution to its stockholders.

In addition, the new notes will provide that LabCorp will eliminate its option to issue shares in lieu of paying cash upon note repurchases.

The exchange offer ends at 5 p.m. ET on Oct. 23.

Lehman Brothers Inc. is the dealer manager and D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 859-8508).

LabCorp, located in Burlington, N.C., commercializes new diagnostic technologies and embraces genomic testing.

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