By Aleesia Forni
Virginia Beach, March 12 - Quest Diagnostics Inc. sold $600 million of senior notes (Baa2/BBB+/BBB) in tranches due 2019 and 2024 on Wednesday, according to a market source and a FWP filed with the Securities and Exchange Commission.
A $300 million tranche of 2.7% five-year notes priced with a spread of Treasuries plus 113 basis points.
The notes sold at 99.934 to yield 2.714%.
Quest also sold $300 million of 4.25% notes due 2024 at 99.554 to yield 4.305%, or 158 bps over Treasuries.
Both tranches sold at the tight end of talk.
Goldman Sachs & Co., RBS Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds will be used to repay outstanding debt under the company's senior unsecured revolving credit facility and secured receivables credit facility. Any remaining proceeds will be used for general corporate purposes.
The diagnostic testing company is based in Madison, N.J.
| Issuer: | Quest Diagnostics Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Joint bookrunners: | Goldman Sachs & Co., RBS Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., BofA Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc.
|
| Trade date: | March 12
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
|
|
| Notes due 2019
|
| Amount: | $300 million
|
| Maturity: | April 1, 2019
|
| Coupon: | 2.7%
|
| Price: | 99.934
|
| Yield: | 2.714%
|
| Spread: | Treasuries plus 113 bps
|
| Price talk: | Treasuries plus 115 bps area
|
| Make-whole call: | Treasuries plus 20 bps
|
|
|
| Notes due 2024
|
| Amount: | $300 million
|
| Maturity: | April 1, 2024
|
| Coupon: | 4.25%
|
| Price: | 99.554
|
| Yield: | 4.305%
|
| Spread: | Treasuries plus 158 bps
|
| Price talk: | Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Jan. 1, 2024, then callable at par
|
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