LH - Labcorp' subsidiary prices $570M debt offering related to Fortrea spinoff

2023-06-13 02:44:55 ET

• On heels of the previously announced spinoff of Fortrea into a separate publicly traded company, Fortrea Holdings Inc., a wholly owned subsidiary of Labcorp ( NYSE: LH ) has priced an offering of $570 million of senior secured notes due 2030.
• The notes will bear interest at a rate of 7.500% per annum, payable semiannually in cash in arrears on January 1 and July 1 of each year, commencing January 1, 2024, and will mature on July 1, 2030.
• In addition to paying a portion of the fees and costs associated with this offering and the transactions related to the Spinoff, net proceeds from the notes offering will be used to fund a portion of an anticipated $1,605 million cash distribution to Labcorp as partial consideration for the assets that will be contributed to Fortrea in connection with the Spinoff.
• Upon closure of the Spinoff, the notes will be jointly and severally guaranteed, on a senior secured basis, by each of Fortrea's existing and subsequently acquired or organized direct or indirect wholly owned subsidiaries.
• The closing of the offering is expected to occur on or about June 27, 2023, subject to customary closing conditions.

For further details see: