By Andrea Heisinger
New York, Nov. 16 - Laboratory Corp. of America Holdings priced $925 million of senior notes (Baa2/BBB+/) in two parts on Tuesday, an informed source said.
The first tranche was $325 million of 3.125% notes due 2016 priced at 99.845 to yield 3.156%, or Treasuries plus 168 basis points. The notes have a make-whole call of 25 bps over Treasuries.
A $600 million tranche of 4.625% 10-year notes sold at 99.542 to yield 4.683% with a spread of 183 bps over Treasuries. They have a make-whole call at 30 bps over Treasuries before Aug. 15, 2020 and are callable after that date at par.
Citigroup Global Markets Inc. was an active bookrunner. Passive bookrunners were Barclays Capital Inc. and Bank of America Merrill Lynch.
Proceeds are going to fund a portion of the purchase price of the acquisition of assets of Genzyme Genetics, and for general corporate purposes.
The clinical lab company is based in Burlington, N.C.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $925 million
|
| Bookrunners: | Citigroup Global Markets Inc. (active), Barclays Capital Inc., Bank of America Merrill Lynch (passive)
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
|
|
| Notes due 2016
|
| Amount: | $325 million
|
| Maturity: | May 15, 2016
|
| Coupon: | 3.125%
|
| Price: | 99.845
|
| Yield: | 3.156%
|
| Spread: | Treasuries plus 168 bps
|
| Call: | Make-whole of Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 4.625%
|
| Price: | 99.542
|
| Yield: | 4.683%
|
| Spread: | Treasuries plus 183 bps
|
| Call: | Make-whole of Treasuries plus 30 bps until Aug. 15, 2020, then at par
|
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