By Ronda Fears
Nashville, Dec. 9 - Laboratory Corp. of America Holdings priced $250 million of 10-year senior unsecured notes at 99.713 with a 5.625% coupon to yield 5.663%, or 115 basis points over the comparable U.S. Treasury, via bookrunner Banc of America Securities LLC.
The registered notes will be senior unsecured obligations and rank equally with all of LabCorp's other existing and future senior unsecured debt.
On Wednesday, LabCorp announced a stock buyback of $500 million and in connection with the program immediately purchased about 4.8 million shares of stock for $250 million, financed with borrowings under its senior credit facility, from Bank of America, NA.
Proceeds from the bond offering will be used, along with cash on hand, to repay the bank debt.
The remainder of the shares under the repurchase program will be purchased in the open market from time to time, the company said, with funds from its existing senior credit facility, future offerings of debt or other credit facilities, or cash on hand.
| Issuer: | Laboratory Corp. of America Holdings
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| Issue: | Senior unsecured notes
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| Bookrunner: | Banc of America LLC
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| Co-manager: | Lehman Brothers, Inc.
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| Amount: | $250 million
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| Maturity: | Dec. 15, 2015
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| Coupon: | 5.625%
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| Price: | 99.713
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| Yield: | 5.663%
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| Spread: | 115 bps over Treasuries
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| Call: | Make-whole at 20 bps over Treasuries
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| Ratings: | Moody's: Baa3
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| S&P: BBB
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 14
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| Distribution: | Registered
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