LabCorp says holders may convert LYONs, 0% convertibles in first quarter

By Laura Lutz

Des Moines, Jan. 9 - Laboratory Corp. of America Holdings (LabCorp) announced that its zero-coupon convertible subordinated notes due 2021 and zero-coupon Liquid Yield Option Notes will be convertible for the first quarter of 2007.

Holders may convert the LYONs at a rate of 13.4108 shares per $1,000 principal amount of the notes. The other 0% notes are convertible under the terms given in the note indenture.

The notes will remain convertible until 5 p.m. ET on April 2.

The LYONs were also convertible for the fourth quarter of 2006.

On Sept. 19, the company announced that the LYONs would accrue contingent interest for the period Sept. 12, 2006 to March 11, 2007.

Under their terms, the notes will accrue interest at a rate of at least 0.125% of the average market price of a LYON for the five trading days ended Sept 7, in addition to the original issue discount. The other zero-coupon notes will accrue contingent interest using the same calculation method.

As previously reported, the zero-coupon convertible subordinated notes were issued on Oct. 24 in an exchange offer for the LYONs.

In that offer, the company also paid an exchange fee of $2.50 per $1,000 principal amount at maturity of LYONs.

Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing.

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