Labcorp announces pricing terms of its tender offer for up to $300,000,000 principal amount of its outstanding 4.625% senior notes due 2020
Labcorp announced the pricing terms of its previously announced cash tender offer (the offer) for up to $300,000,000 principal amount (the tender cap) of its outstanding $600,000,000 aggregate principal amount of 4.625% senior notes due 2020 (the notes). the terms and conditions of the offer are described in the offer to purchase dated nov. 18, 2019 (the offer to purchase) and remain unchanged. the total consideration (the total consideration) for the notes is based on the yield to maturity of the applicable u.s. treasury security (the reference yield) plus a fixed spread, as set forth in the table below. the reference yield (as determined pursuant to the offer to purchase) was determined at 10:00 a.m. est today, dec. 3, 2019, by the dealer managers. the total consideration is payable to holders of notes validly tendered and not validly withdrawn at or prior to 5:00 p.m. est on dec. 2, 2019 (the early tender deadline) and accepted for purchase by labcorp. the total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes validly tendered and not validly withdrawn by such holders and accepted for purchase by labcorp (the early tender premium). all payments for notes purchased in connection with the early tender deadline will also include accrued and unpaid interest on the principal amount of notes tendered up to, but not including, the early settlement date, which is currently expected to be dec. 4, 2019. as announced earlier today, labcorp will accept all notes validly tendered and not validly withdrawn on or before the early tender deadline. labcorp will continue to accept notes tendered after the early tender deadline up to the tender cap. notes may be subject to proration if the aggregate principal amount of the notes validly tendered is greater than the tender cap. the offer will expire at 11:59 p.m. est on dec. 16, 2019, unless extended or earlier terminated by labcorp (the expiration date). holders of notes who validly tender their notes following the early tender deadline and on or prior to the expiration date will receive the tender offer consideration� per $1,000 principal amount of any such notes tendered by such holders that are accepted for purchase, which is equal to the total consideration minus the early tender premium. holders of notes accepted for purchase by labcorp will also receive accrued interest from the most recent interest payment date for the notes up to, but not including, the applicable settlement date. the deadline to validly withdraw tenders has passed. accordingly, notes that were already tendered at the early tender deadline may not be withdrawn, except in certain limited circumstances where additional withdrawal rights are required by law.
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