Quest Diagnostics receives tenders for 26.87% of 5.125% notes, 35.94% of 7.5% notes

By Jennifer Chiou

New York, Nov. 20 - Quest Diagnostics Inc. announced the wrap of its tender offer to purchase any and all of its 5.125% senior notes due 2010 and its 7.5% senior notes due 2011, adding that it received tenders from holders of $60,829,000, or 26.87%, of the 5.125% notes and $89,369,000, or 35.94%, of the 7.5% notes.

The offer expired at 5 p.m. ET on Nov. 19. It began on Nov. 12.

For each $1,000 principal amount, Quest said it paid $1,037.19 for the 5.125% notes and $1,099.40 for the 7.5% notes plus accrued interest up to the settlement date, which was slated for Friday.

The purchase prices were based on the 1% Treasury note due Oct. 31, 2011. The Treasury yield was 0.765%, and for the 5.125% notes, the tender yield was 1.165%; for the 7.5% notes, it was 1.365%.

Quest said it intended to use a portion of the net proceeds from its senior notes offering to fund the offer.

Bank of America Merrill Lynch (888 292-0070 or collect 980 388-4603) was the global coordinator and joint lead dealer manager, and Morgan Stanley, RBS Securities Inc. and Wells Fargo Securities were the joint lead dealer managers. Global Bondholder Services Corp. (866 470-3800) was the depositary and information agent.

Quest Diagnostics provides diagnostic testing, information and services and is based in Lyndhurst, N.J.

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