Quest prices tender offer for up to $200 million of 5.125%, 7.5% notes

By Susanna Moon

Chicago, June 12 - Quest Diagnostics Inc. said it set pricing for the tender offer to purchase up to $200 million principal amount total of its $400 million of 5.125% senior notes due 2010 and its $275 million of 7.5% senior notes due 2011.

For each $1,000 principal amount, Quest said it will pay $1,021.49 for the 5.125% notes and $1,050.44 for the 7.5% notes plus accrued interest up to the settlement date.

As previously noted, the purchase price is based on the 0.875% Treasury note due April 30, 2011 plus a fixed spread. For the 5.125% notes, the spread was 225 basis points, and for the 7.5% notes, the spread was 365 bps. The notes are listed in order of acceptance priority.

The payout includes a $30.00 premium for notes tendered by the early tender date, which was 5 p.m. ET on June 2.

The offer will expire at midnight ET on June 16. It began on May 19. The settlement date is expected to be June 18.

As of the early tender date, holders had tendered $173,572,000 of the 5.125% notes and $48.72 million of the 7.5% notes.

Banc of America Securities LLC (888 292-0070 or collect 980 388-4603) is lead dealer manager, and Calyon Securities (USA) Inc. and Mitsubishi UFJ Securities (USA), Inc. are co-dealer managers. Global Bondholder Services Corp. (866 470-3800) is the depositary and information agent.

Quest Diagnostics provides diagnostic testing, information and services and is based in Lyndhurst, N.J.

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