LabCorp convertibles to accrue contingent cash interest to Sept. 11

By Jennifer Chiou

New York, March 26 - Laboratory Corp. of America Holdings (LabCorp) announced that its zero-coupon convertible subordinated notes due 2021 will accrue contingent cash interest for the period of March 12 to Sept. 11.

According to a company news release, contingent cash interest, which the company has determined to be $1.23 per note, will be payable to holders of record as of Aug. 27.

The notes will accrue contingent cash interest at a rate of no less than 0.125% of the average market price of the notes for the five trading days ended March 9 in addition to the continued accrual of the original issue discount.

The payment date is slated for Sept. 14.

In a January announcement, the company said that in order to convert all or a portion of the notes into cash and common stock, holders must surrender their securities up to March 31 at 5 p.m. ET.

Upon conversion, LabCorp would be required to pay holders in cash for the accreted principal amount, with the remaining amount, if any, to be satisfied with shares of LabCorp stock.

Burlington, N.C.-based LabCorp is a diagnostic technologies and genomic testing company.

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