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Quest Diagnostics holders tender $266.86 million 6.95%, 5.75% notes
By Marisa Wong
Morgantown, W.Va., March 29 – Quest Diagnostics Inc. announced that as of 5 p.m. ET on March 28, the early tender date, holders had tendered $97,122,000 of its 6.95% senior notes due 2037 and $169,739,000 of its 5.75% senior notes due 2040.
The company will accept $72,814,000 of the tendered 6.95% notes and $127,186,000 of the 5.75% notes, according to a Tuesday press release.
The company is offering to purchase up to $200 million of notes from the two series. Because the amount tendered as of the early tender date exceeds the maximum tender amount and because notes tendered by the early tender date have priority over notes tendered afterward, no notes tendered after the early deadline will be accepted for purchase.
Pricing was set at 2 p.m. ET on March 28 using the reference yield based on the bid-side price of 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 5.75% notes. The total purchase price for each $1,000 principal amount was set using a reference yield of 2.636% as follows:
• $1,302.53 for the $248,575,000 of outstanding 6.95% senior notes due 2037; and
• $1,167.62 for the $376,425,000 of outstanding 5.75% senior notes due 2040.
The total payment includes an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early tender date.
The company will also pay accrued interest to the settlement date of March 29 for the early tendered notes. Final settlement of remaining tenders had been slated for April 12, with the tender offer set to expire at 11:59 p.m. ET on April 11.
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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