Laboratory Corp. of America Holdings : Conversion Right Triggered for LabCorp's Zero Coupon Convertible Subordinated Notes Due 2021
07/02/2012| 09:05am US/Eastern
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Laboratory Corporation of America® Holdings (LabCorp®)
(NYSE: LH) announced today that its Zero Coupon Convertible Subordinated
Notes due 2021 (Zero Coupon Notes) may be converted as set forth below.
The Zero Coupon Notes are convertible into cash and Common Stock of
LabCorp, if any, subject to the terms of the Zero Coupon Notes and the
Indenture, dated as of October 24, 2006 between LabCorp and The Bank of
New York Mellon, as trustee (Trustee) and the conversion agent.
In order to exercise the option to convert all or a portion of the Zero
Coupon Notes, holders must validly surrender their Zero Coupon Notes at
any time during the calendar quarter through the close of business at
5:00 p.m., New York City time, on Friday, September 28, 2012. The
Trustee has informed LabCorp that, as of this date, all custodians and
beneficial holders of the Zero Coupon Notes hold the Zero Coupon Notes
through Depository Trust Company (DTC) accounts and that there are no
certificated Zero Coupon Notes in non-global form. Accordingly, all Zero
Coupon Notes surrendered for conversion must be delivered through the
transmittal procedures of DTC.
Should Zero Coupon Notes be converted, LabCorp would be required to pay
holders in cash for the accreted principal amount of the securities to
be converted, with the remaining amount, if any, to be satisfied with
shares of Common Stock. The shares required for settlement of the Zero
Coupon Notes are included in LabCorp's computation of fully diluted
earnings per share.
About LabCorp®
Laboratory Corporation of America® Holdings, an S&P 500
company, is a pioneer in commercializing new diagnostic technologies and
the first in its industry to embrace genomic testing. With annual
revenues of $5.5 billion in 2011, over 31,000 employees worldwide, and
more than 220,000 clients, LabCorp offers more than 4,000 tests ranging
from routine blood analyses to reproductive genetics to companion
diagnostics. LabCorp furthers its scientific expertise and innovative
clinical testing technology through its LabCorp Specialty Testing Group:
The Center for Molecular Biology and Pathology, National Genetics
Institute, ViroMed Laboratories, Inc., The Center for Esoteric Testing,
Litholink Corporation, Integrated Genetics, Integrated Oncology, DIANON Systems,
Inc., Monogram Biosciences, Inc., Colorado Coagulation, and Endocrine
Sciences. LabCorp conducts clinical trials testing through its LabCorp
Clinical Trials division. LabCorp clients include physicians, government
agencies, managed care organizations, hospitals, clinical labs, and
pharmaceutical companies. To learn more about our organization, visit
our Web site at: www.labcorp.com.
This press release contains forward-looking statements. Each of the
forward-looking statements is subject to change based on various
important factors, including without limitation, competitive actions in
the marketplace and adverse actions of governmental and other
third-party payors. Actual results could differ materially from
those suggested by these forward-looking statements. Further information
on potential factors that could affect LabCorp's financial results is
included in the Company's Form 10-K for the year ended December 31,
2011, and subsequent SEC filings.
Laboratory Corporation of America® Holdings
Stephen
Anderson, 336-436-5274
www.labcorp.com
© Business Wire 2012
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