By Cristal Cody
Chicago, May 12 – Laboratory Corp. of America Holdings sold $1 billion of senior notes (Baa2) in two parts on Wednesday, according to a market source.
Each tranche was sized at $500 million.
The issuer sold 1.55% notes due June 1, 2026 at Treasuries plus 70 basis points, tighter than talk in the Treasuries plus 95 bps to 100 bps area.
A 10-year tranche was sold with a 2.7% coupon and a Treasuries plus 105 bps spread, similarly tighter than talk in the 125 bps to 130 bps area.
BofA Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
The company plans to use proceeds to redeem its outstanding 3.2% senior notes due Feb. 1, 2022 and 3.75% senior notes due Aug. 23, 2022 prior to their respective maturities, according to a press release.
Based in Burlington, N.C., LabCorp provides comprehensive clinical laboratory and end-to-end drug development services.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC
|
| Trade date: | May 12
|
| Settlement date: | May 26
|
| Rating: | Moody’s: Baa2
|
|
|
| 2026 notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2026
|
| Coupon: | 1.55%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 95 to 100 bps area
|
|
|
| 2031 notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2031
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 125 bps to 130 bps area
|
|
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