By Andrea Heisinger
New York, Nov. 12 - Quest Diagnostics Inc. sold $750 million of senior unsecured notes (Baa3/BBB+/BBB+) in two tranches on Thursday, an informed source said.
The $500 million of 4.75% 10-year notes priced at 98.491 to yield 4.938%, or Treasuries plus 150 basis points. The tranche was initially talked in the 165 bps area, the source said, and then revised to the 155 bps area, plus or minus 5 bps. It launched at 150 bps.
A $250 million tranche of 5.75% 30-year notes priced at 97.228 to yield 5.947% with a spread of Treasuries plus 155 bps. This tranche also came at the tight end of talk that was originally in the 170 bps area and was then revised to the 160 bps area, with a margin of plus or minus 5 bps. It was launched at 155 bps.
The tranches each have a make-whole call at Treasuries plus 25 bps and feature a change-of-control put of 101%.
Bank of America Merrill Lynch, Morgan Stanley & Co., RBS Securities Inc. and Wells Fargo Securities ran the books.
Co-managers were Barclays Capital Inc., Calyon Securities, J.P. Morgan Securities Inc., Mitsubishi UFJ Securities and U.S. Bancorp Investments.
The deal is guaranteed by certain domestic subsidiaries of the company.
Proceeds are going to repurchase notes tendered under a concurrent tender offer and for general corporate purposes.
The diagnostic testing company is based in Madison, N.J.
| Issuer: | Quest Diagnostics Inc.
|
| Issue: | Senior unsecured notes
|
| Guarantors: | Domestic subsidiaries
|
| Total amount: | $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co., RBS Securities Inc., Wells Fargo Securities
|
| Co-managers: | Barclays Capital Inc., Calyon Securities, J.P. Morgan Securities Inc., Mitsubishi UFJ Securities, U.S. Bancorp Investments
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 30, 2020
|
| Coupon: | 4.75%
|
| Price: | 98.491
|
| Yield: | 4.938%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 165 bps area, revised to 155 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | Jan. 30, 2040
|
| Coupon: | 5.75%
|
| Price: | 97.228
|
| Yield: | 5.947%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 170 bps area, revised to 160 bps area, plus or minus 5 bps
|
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