By Andrea Heisinger
New York, Aug. 20 - Laboratory Corp. of America Holdings priced $1 billion of senior notes (Baa2/BBB+/) in two parts on Monday, a source away from the deal said.
The $500 million of 2.2% five-year notes priced at 99.793 to yield 2.244% with a spread of Treasuries plus 145 basis points. The tranche has a make-whole call at 25 bps over Treasuries.
A $500 million tranche of 3.75% 10-year notes sold at 99.884 to yield 3.764% with a spread of 195 bps over Treasuries. There is a make-whole call at 30 bps over Treasuries until May 23, 2022, with a par call after that date.
The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were the active bookrunners. Passive bookrunners were Barclays and Wells Fargo Securities LLC.
Co-managers were BB&T Capital Markets, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc. and TD Securities USA LLC.
Proceeds will be used to repay all or a portion of outstanding borrowings under a revolving credit agreement and for general corporate purposes.
LabCorp. was last in the market with a $925 million deal in two maturities on Nov. 16, 2010. A 3.125% note due 2016 from that offering sold at 168 bps over Treasuries while a 4.625% 10-year note priced at 183 bps over Treasuries.
The independent clinical laboratory company is based in Burlington, N.C.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC (active), Barclays, Wells Fargo Securities LLC (passive)
|
| Co-managers: | BB&T Capital Markets, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., TD Securities USA LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 20
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 23, 2017
|
| Coupon: | 2.2%
|
| Price: | 99.793
|
| Yield: | 2.244%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 23, 2022
|
| Coupon: | 3.75%
|
| Price: | 99.884
|
| Yield: | 3.764%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until May 23, 2022, par call after
|
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