LabCorp calls all remaining LYONs, half of remaining 0% convertibles for redemption

By Jennifer Chiou

New York, May 11 - Laboratory Corp. of America Holdings (LabCorp) announced that it will exercise its option to redeem $369.1 million principal amount at maturity, or about 50%, of its zero-coupon convertible subordinated notes due 2021 and all of its remaining zero-coupon Liquid Yield Option Notes due 2021 on June 10.

The company said that it expects to use $289.6 million of cash on hand for the redemption.

At March 31, the company had an aggregate of $576.3 million of accreted principal amount of convertible notes in all.

In the fourth quarter, the LYONs were convertible into 13.4108 LabCorp common shares per $1,000 principal amount. There was $389,000 of the LYONs outstanding as of Sept. 30, 2008.

The notes also were convertible for the prior eight quarters.

"By redeeming this convertible debt with existing liquidity, LabCorp is able to strengthen its capital structure and reduce the uncertainty related to potential conversions of these securities in the future," said William B. Hayes, chief financial officer, in a news release.

The Bank of New York is the trustee.

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

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