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Quest hits tender offer cap for 6.95%, 5.75% notes by early deadline
By Susanna Moon
Chicago, March 19 – Quest Diagnostics Inc. said it accepted tenders for $176,425,000 of its $425 million 6.95% senior notes due 2037 and $73,575,000 of its $450 million 5.75% senior notes due 2040.
The response is as of 11:59 p.m. ET on March 18, the early tender date.
Because the purchase amount so far meets or exceeds the offer cap, the company will not purchase any notes tendered after the early tender date, according to a company press release.
As previously announced, the company had offered to purchase up to $250 million of the two series of notes, listed in order of priority acceptance level.
The offer was set to end at 11:59 p.m. ET on April 1, with settlement for early tendered notes expected to occur on March 19.
The total purchase price for each $1,000 principal amount will be $1,348.59 for the 6.95% notes and $1,208.97 for the 5.75% notes.
The total amounts include an early tender premium of $50.00 per $1,000 of notes tendered by the early tender deadline.
Holders will also receive accrued interest up to but excluding the settlement date.
Pricing was set at 2 p.m. ET on March 18 using a fixed spread over the reference yield based on the bid-side price of the 3% Treasury due Nov. 15, 2044. The spread is 185 basis points for the 6.95% notes and 175 bps for the 5.75% notes. The reference yield is 2.614%.
Originally, the spread was 195 bps for the 6.95% notes and 185 bps for the 5.75% notes. The spreads were amended later the same day in a separate press release.
All notes tendered by the early tender date had priority over any notes tendered after that date.
J.P. Morgan Securities LLC (800 834-4666 or 212 834-4811) is the dealer manager. D.F. King & Co., Inc. (800 814-9324) is the tender agent and information agent.
Quest is a diagnostic testing company based in Madison, N.J.
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