Published on 8/16/2017 in the Prospect News Investment Grade Daily.
New Issue: LabCorp details $1.2 billion 3.25% notes due 2024, 3.6% notes due 2027
By Devika Patel
Knoxville, Tenn., Aug. 16 – Laboratory Corp. of America Holdings offered further details about a $1.2 billion issue of senior notes (Baa2/BBB) that priced in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold a $600 million tranche of 3.25% seven-year notes Treasuries plus 120 basis points. These notes priced at 99.775 to yield 3.286%.
LabCorp also priced a $600 million tranche of 3.6% 10-year notes at Treasuries plus 135 bps. These notes were priced at 99.849 to yield 3.618%.
BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, MUFG and TD Securities (USA) LLC were the bookrunning managers.
Proceeds will be used for general corporate purposes, including to repay at maturity the company’s 2.2% senior notes due Aug. 23, 2017 and to repay borrowings under its revolving credit facility.
Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing.
| Issuer: | Laboratory Corp. of America Holdings
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, MUFG and TD Securities (USA) LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., BB&T Capital Markets, BNY Mellon Capital Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities Inc. and Goldman Sachs & Co.
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 3.25%
|
| Price: | 99.775
|
| Yield: | 3.286%
|
| Spread: | Treasuries plus 120 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until July 1, 2024, then a par call
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 1, 2027
|
| Coupon: | 3.6%
|
| Price: | 99.849
|
| Yield: | 3.618%
|
| Spread: | Treasuries plus 135 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until July 1, 2027, then a par call
|
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