Thursday, Quest Diagnostics Inc (DGX), a diagnostic testing information and service provider, said it has commenced a cash tender offer to purchase any and all of its 5.125% Senior Notes due 2010 and any and all of its 7.50% Senior Notes due 2011.
The company is offering $750 million in notes, which will enable it to purchase its senior debt. The offer will expire on November 19, unless extended.
According to the company, the consideration for each $1,000 principal amount of notes tendered and accepted for payment pursuant to the Tender Offer will be determined on November 17. Quest said that the purchase price, which will be determined by reference to a fixed spread specified for each series of Notes over the yield based on the bid-side price of the applicable U.S. Treasury Security, will be announced after its determination.
In addition, the Madison, New Jersey-based company said it will pay accrued and unpaid interest up to, but excluding, the applicable settlement date on all validly tendered Notes accepted for purchase in the Offer. The settlement date for the Offer is expected to be the first business day following the expiration date and currently is expected to be November 20.
The company intends to use a portion of the net proceeds from its senior notes offering to fund the Tender Offer, which remains subject to meeting certain conditions.
Quest Diagnostics has retained BofA Merrill Lynch as Global Coordinator & Joint Lead Dealer Manager, and Morgan Stanley, RBS and Wells Fargo Securities as Joint Lead Dealer Managers. Global Bondholder Services Corp. has been retained to serve as the depositary and to serve as the information agent for the Offer.
DGX is currently on the New York Stock Exchange at $58.74, up $0.60 or 1.03%.
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