Quest Diagnostics offers to buy $200 million of 6.95%, 5.75% notes

By Angela McDaniels

Tacoma, Wash., March 15 – Quest Diagnostics Inc. began tender offers to purchase up to $200 million combined principal amount of its $248,575,000 of outstanding 6.95% senior notes due 2037 and its $376,425,000 of outstanding 5.75% senior notes due 2040, according to a company news release.

Either series of notes may be subject to proration.

The early tender date is 5 p.m. ET on March 28, and each offer will expire at 11:59 p.m. ET on April 11.

Pricing will be determined by reference to the 3% Treasury due Nov. 15, 2045 plus a fixed spread of 205 basis points for the 6.95% notes and 195 bps for the 5¾% notes.

For each series of notes, the total offer consideration will include an early tender premium of $50 per $1,000 principal amount of notes tendered by the early tender date.

The company will also pay accrued interest up to but excluding the settlement date, which is expected to be March 29 for notes tendered by the early tender date and April 12 for notes tendered after the early tender date.

All notes tendered by the early tender date will have priority over notes tendered after the early tender date. Accordingly, if the amount of notes tendered by the early tender date is more than the cap, no notes tendered after the early tender date will be accepted for purchase.

The dealer manager is J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424). The information agent is D.F. King & Co., Inc. (800 330-5136).

Quest is a diagnostic testing company based in Madison, N.J.

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