LABCORP PRICES $650,000,000 IN 4.350% SENIOR NOTES DUE 2030, $500,000,000 IN 4.550% SENIOR NOTES DUE 2032 AND $850,000,000 IN 4.800% SENIOR NOTES DUE 2034
Rhea-AI Summary
Labcorp Holdings Inc. (NYSE:LH) has announced the pricing of a $2 billion senior notes offering through its subsidiary, Laboratory of America Holdings (LCAH). The offering consists of three tranches:
- $650 million of 4.350% Senior Notes due 2030
- $500 million of 4.550% Senior Notes due 2032
- $850 million of 4.800% Senior Notes due 2034
The notes will bear interest from September 23, 2024, payable semi-annually. LCAH plans to use the net proceeds to redeem or repay existing indebtedness, including $400 million of 2.30% Senior Notes due December 2024 and $1 billion of 3.60% Senior Notes due February 2025. Additionally, $350 million will be used to repay borrowings under its revolving credit facility, with any remaining funds for general corporate purposes.
Positive
- Successful pricing of a $2 billion senior notes offering
- Potential improvement in debt structure with longer maturities
- Repayment of existing debt and revolving credit facility, potentially reducing interest expenses
Negative
- Increase in total debt load by $600 million (difference between new issuance and stated debt repayment)
- Slightly higher interest rates on new notes compared to some existing debt being repaid
News Market Reaction
On the day this news was published, LH gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The Offering will be made pursuant to an effective shelf registration statement on Form S-3 of Labcorp and LCAH (File Nos. 333-279510 and 333-279510-01) filed with the Securities and Exchange Commission (the SEC) on May 17, 2024, a base prospectus, dated May 17, 2024, and prospectus supplement, dated September 16, 2024, filed by Labcorp and LCAH with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended.
LCAH expects to use the net proceeds of the Offering to redeem or repay indebtedness, which is expected to include
The joint book-running managers and representatives for the Offering are BofA Securities, US Bancorp, and Wells Fargo Securities, the book-running managers for the Offering are Goldman Sachs & Co. LLC, MUFG, and PNC Capital Markets LLC and the co-managers for the Offering are Barclays, Citigroup, Citizens Capital Markets, Credit Agricole CIB, Fifth Third Securities, J.P. Morgan, KeyBanc Capital Markets, TD Securities, Truist Securities, and UBS Investment Bank. A copy of the base prospectus and related prospectus supplement may be obtained without charge from the SEC. Alternatively, a copy of the base prospectus and related prospectus supplement may be obtained from BofA Securities, Inc. by calling toll-free 1-800-294-1322, from
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities may be made only by means of the prospectus supplement and the accompanying base prospectus.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. Labcorp's more than 67,000 employees serve clients in approximately 100 countries, provided support for
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements including statements about the proposed offering of the Notes and use of proceeds therefrom. Each of the forward-looking statements is subject to change based on various important factors, including the risk that the offering may not be completed. As a result, readers are cautioned not to place undue reliance on any of these forward-looking statements. Labcorp has no obligation to provide any updates to these forward-looking statements, even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks, and uncertainties that could affect operating and financial results is included in Labcorp's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading "RISK FACTORS," and in Labcorp's other filings with the SEC.
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SOURCE Labcorp Holdings Inc
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