BURLINGTON, N.C., Sept. 16,
2024 /PRNewswire/ -- Labcorp Holdings Inc. (NYSE:LH)
(Labcorp) announced today that its wholly owned subsidiary,
Laboratory Corporation of America Holdings (LCAH), has priced its
offering of $2,000,000,000 in senior
notes (the Offering). The Offering consists of three tranches:
$650,000,000 aggregate principal
amount of 4.350% Senior Notes due 2030 (the 2030 Notes),
$500,000,000 aggregate principal
amount of 4.550% Senior Notes due 2032 (the 2032 Notes) and
$850,000,000 aggregate principal
amount of 4.800% Senior Notes due 2034 (the 2034 Notes and,
together with the 2030 Notes and the 2032 Notes, the Notes). The
Notes will bear interest from September 23,
2024, payable semi-annually on April
1 and October 1, commencing on
April 1, 2025. The 2030 Notes will be
issued at 99.931% of par value and will mature on April 1, 2030. The 2032 Notes will be issued at
99.608% of par value and will mature on April 1, 2032. The 2034 Notes will be
issued at 99.755% of par value and will mature on October 1, 2034. The Offering is expected to
close on September 23, 2024, subject
to the satisfaction of customary closing conditions. The Notes will
be LCAH's senior unsecured obligations, will rank equally with
LCAH's existing and future senior unsecured debt and will be fully
and unconditionally guaranteed by Labcorp.
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 $400.0 million of LCAH's outstanding 2.30% Senior
Notes due December 1, 2024 and
$1.0 billion of LCAH's outstanding
3.60% Senior Notes due February 1,
2025. In addition, LCAH intends to use the net proceeds of
the Offering to repay $350.0 million
of borrowings under its revolving credit facility, and, to the
extent not used for such purpose, for other general corporate
purposes.
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 U.S. Bancorp Investments, Inc. by
calling toll-free 1-877-558-2607, or from Wells Fargo Securities,
LLC by calling toll-free 1-800-645-3751.
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 84% of the new
drugs and therapeutic products approved in 2023 by the FDA, and
performed more than 600 million tests for patients around the
world.
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