LabCorp says holders may convert LYONs, 0% convertibles in second quarter

By Angela McDaniels

Seattle, April 16 - Laboratory Corp. of America Holdings (LabCorp) said its zero-coupon convertible subordinated notes due 2021 and zero-coupon Liquid Yield Option Notes due 2021 are convertible for the second quarter of 2007.

The LYONs are convertible into 13.4108 LabCorp common shares per $1,000 principal amount. There was $1.07 million of the LYONs outstanding at March 31.

For each $1,000 of zero-coupon convertibles converted, the company will pay cash for the accreted principal amount and stock for the remaining amount, if any.

The LYONs and zero-coupon convertibles will remain convertible until 5 p.m. ET on July 2.

The notes were also convertible for the first quarter of 2007 and the fourth quarter of 2006.

On March 19, the company announced that the notes would accrue contingent interest for the period of March 12 to Sept. 11. 2007.

Under their terms, the notes will accrue interest at a rate of at least 0.125% of the average market price of a LYON or zero-coupon note for the five trading days ended March 7, in addition to the original issue discount.

Contingent cash interest of about $1.22 per note will be payable to noteholders of record as of Aug. 27, 2007 on Sept. 11, 2007, according to previous a company news release.

Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing.

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