Published on 11/18/2019 in the Prospect News Investment Grade Daily.
New Issue: Laboratory Corp. of America sells $1.05 billion of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Nov. 18 – Laboratory Corp. of America Holdings sold $1.05 billion of senior notes (Baa2/BBB) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The deal included $400 million of 2.3% five-year notes that priced at a spread of Treasuries plus 72 basis points, or 99.769 to yield 2.349%.
A $650 million tranche of 2.95% 10-year notes priced at 99.741 to yield 2.98% and a spread of 117 bps over Treasuries.
The notes priced on the firm side of guidance.
BofA Securities, Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, KeyBanc Capital Markets LLC, MUFG and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including to purchase, redeem or repay the company’s 2.625% senior notes due Feb. 1, 2020, to fund a tender offer for up to $300 million of its 4.625% senior notes due Nov. 15, 2020, to repay borrowings under its 2017 term loan agreement and to repay borrowings under its 2019 term loan credit agreement.
Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing
| Issuer: | Laboratory Corp. of America Holdings
|
| Amount: | $1.05 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, KeyBanc Capital Markets LLC, MUFG and TD Securities (USA) LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Citizens Capital Markets, Inc., Credit Agricole CIB, Fifth Third Securities, Inc. and Goldman Sachs & Co. LLC
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 1, 2024
|
| Coupon: | 2.3%
|
| Price: | 99.769
|
| Yield: | 2.349%
|
| Spread: | Treasuries plus 72 bps
|
| Call features: | Make-whole call at Treasuries plus 12.5 bps before Nov. 1, 2024; thereafter at par
|
| Price guidance: | Treasuries plus 75 bps area, plus or minus 3 bps; initial talk at Treasuries plus 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | Dec. 1, 2029
|
| Coupon: | 2.95%
|
| Price: | 99.741
|
| Yield: | 2.98%
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Sept. 1, 2029; thereafter at par
|
| Price guidance: | Treasuries plus 120 bps area, plus or minus 3 bps; initial talk at Treasuries plus 135 bps area
|
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