LabCorp’s Sequenom wraps tender offer for convertibles due 2017, 2018

By Susanna Moon

Chicago, Oct. 18 – Sequenom, Inc. received tenders for $44,871,000, or 99.713%, of its $45 million of outstanding 5% convertible senior notes due 2017 and all of its $85 million of outstanding 5% convertible senior exchange notes due 2018.

Sequenom accepted for purchase all of the notes tendered in the offers that ended at 5 p.m. ET on Oct. 17, according to a company update.

The final tally includes early tenders for $44,841,000, or 99.647%, of the convertibles due 2017 and all of the outstanding convertibles due 2018, as previously announced.

The recently acquired subsidiary of Laboratory Corp. of America Holdings said on Sept. 30 that it also had received the requested consents to amend the note indentures.

A supplemental indenture for both series of notes was executed and will become effective when the tender offer settles, which is expected to be on Oct. 20.

The tender offer and consent solicitation was announced on Sept. 16.

It followed the acquisition of Sequenom by LabCorp in a transaction that closed on Sept. 7.

The acquisition counted as a fundamental change under the indentures for the convertibles. As a result, Sequenom was required to offer to repurchase the convertibles.

Sequenom was also soliciting consents to make proposed amendments to the indentures to eliminate various reporting obligations and restrictive provisions related to the incurrence of debt and to make other changes.

Per $1,000 principal amount of notes, the company is offering $1,037.50 for the 2017 convertibles and $1,046.25 for the 2018 convertibles. These amounts include an early tender premium for holders who tendered and provided consents by 5 p.m. ET on Sept. 29, the early tender date.

Holders who tendered by the early tender date but did not provide consent and holders who tendered after the early tender date but prior to the tender offer expiration will receive par.

The company will also pay accrued interest up to but excluding the settlement date.

The payment of the early tender premiums was conditioned on Sequenom receiving consents for at least a majority of both series of notes by the early tender date.

The dealer manager and solicitation agent is Barclays (888 610-5877 or 212 526-7255). The information agent is Morrow Sodali Global, LLC (203 658-9400 or 800 662-5200).

Sequenom is a San Diego-based life sciences company. Burlington, N.C.-based LabCorp develops diagnostic technologies.

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