By Aleesia Forni
Virginia Beach, Oct. 29 - Laboratory Corp. of America Holdings came to Tuesday's market selling $700 million of senior notes (Baa2/BBB/), according to a market source and an FWP filing with the Securities and Exchange Commission.
The deal included $400 million of 2.5% five-year notes with a spread of Treasuries plus 125 basis points.
Pricing was at 99.916 to yield 2.518%.
There was also a $300 million tranche of 4% 10-year notes priced at 165 bps over Treasuries, or 98.726 to yield 4.157%.
Both tranches sold at the tight end of talk.
Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to repay all or a portion of outstanding borrowings under a revolving credit agreement and for general corporate purposes.
The independent clinical laboratory company is based in Burlington, N.C.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Active joint bookrunners: | Barclays, Wells Fargo Securities LLC
|
| Passive joint bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
|
| Co-managers: | Lazard Capital Markets LLC, Fifth Third Securities Inc., BofA Merrill Lynch, U.S. Bancorp Investments Inc.
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Nov. 1, 2018
|
| Coupon: | 2.5%
|
| Price: | 99.916
|
| Yield: | 2.518%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 130 bps area
|
| Make-whole call: | Treasuries plus 20 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 4%
|
| Price: | 98.726
|
| Yield: | 4.157%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | Treasuries plus 170 bps area
|
| Make-whole call: | Treasuries plus 25 bps
|
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