By Aleesia Forni
Virginia Beach, Jan. 21 – Laboratory Corp. of America Holdings priced $2.9 billion of senior notes (Baa2/BBB/) on Wednesday in four tranches, according to a market source.
The company priced $500 million of 2.625% five-year notes at 130 basis points over Treasuries. Pricing was at 99.888 to yield 2.649%.
The $500 million of 3.2% seven-year notes priced at 99.919 to yield 3.213%, or 155 bps over Treasuries.
A $1 billion tranche of 3.6% 10-year notes priced at 99.85 to yield 3.618%. The notes sold with a spread of Treasuries plus 175 bps.
There was also $900 million of 4.7% 30-year notes priced at 99.236 to yield 4.748%, or Treasuries plus 230 bps.
BofA Merrill Lynch, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes and to help fund the company’s acquisition of Covance Inc.
The independent clinical laboratory company is based in Burlington, N.C.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $2.9 billion
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
|
| Trade date: | Jan. 21
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2020
|
| Coupon: | 2.625%
|
| Price: | 99.888
|
| Yield: | 2.649%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | 135 bps area, tightened from 150 bps to 155 bps
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2022
|
| Coupon: | 3.2%
|
| Price: | 99.919
|
| Yield: | 3.213%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | 160 bps area, tightened from 175 bps to 180 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 3.6%
|
| Price: | 99.85
|
| Yield: | 3.618%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | 180 bps area, tightened from 195 bps to 200 bps
|
|
|
| 30-year bonds
|
| Amount: | $900 million
|
| Maturity: | Feb. 1, 2045
|
| Coupon: | 4.7%
|
| Price: | 99.236
|
| Yield: | 4.748%
|
| Spread: | Treasuries plus 230 bps
|
| Price talk: | 235 bps area, tightened from 240 bps to 245 bps
|
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