TETERBORO, N.J., June 28 /PRNewswire/ -- Quest Diagnostics Incorporated
(NYSE: DGX) announced today that it has received $725 million from the public
offering of senior notes and a new term loan, thereby completing its
previously announced debt refinancing. The refinancing is expected to lower
annual interest expense by approximately $23 million. Interest expense for the
second half of the year ending December 31, 2001 is expected to be reduced by
approximately $11 million as a result of the refinancing.
The company raised $550 million from the senior notes, comprising
$275 million from the sale of 6-3/4% Senior Notes due 2006 and $275 million
from the sale of 7-1/2% Senior Notes due 2011. Merrill Lynch and Credit Suisse
First Boston were joint book-runners on the offering.
In addition, the company established a five-year $175 million term loan
under a new unsecured credit agreement, which also provides for a five-year
$325 million revolving credit facility, which currently has no borrowings
outstanding. The credit agreement is with a group of banks led by Banc of
America and UBS Warburg.
Proceeds from the refinancing were used to repay the company's term loans
under its previous secured credit facility and will be used later today to
repay holders of its 10-3/4% Senior Subordinated Notes due 2006 that have been
tendered.
The cash tender offer for the company's $150,000,000 10-3/4% Senior
Subordinated Notes due 2006 expired, as scheduled, at 5:00 p.m. New York City
time on Wednesday, June 27, 2001. As of the expiration date, approximately
$147 million in aggregate principal amount, or 98%, of its $150,000,000
10-3/4% Senior Subordinated Notes due 2006 had been validly tendered and not
withdrawn. The total consideration, which is payable to holders who tendered
their notes during the consent period, was $1,083.29 per $1,000 face value,
while the tender offer consideration, which is payable to noteholders who
tendered after the end of the consent period, was $1,053.29 per $1,000 face
value.
Merrill Lynch & Co. acted as Dealer Manager for the tender offer and
consent solicitation. The Information Agent was Georgeson & Company, Inc. and
the Depositary was The Bank of New York. Persons with questions regarding the
tender offer and consent solicitation should contact Merrill Lynch & Co.,
Liability Management Group, at either 888-ML4-TNDR (toll free) or 212-449-4914
(collect).
Quest Diagnostics will release financial results for the second quarter
ending June 30, 2001, after the close of the stock market on July 23, 2001.
The company is currently in a "quiet" period and will discuss results for the
second quarter during a conference call on July 24 at 8:00 A.M. Eastern Time.
To hear a simulcast of the call over the Internet, or a replay, registered
analysts may access StreetEvents at: http://www.streetevents.com and all
others may access the Quest Diagnostics website at:
http://www.questdiagnostics.com. In addition, a replay of the call will also
be available from 10 A.M. on July 24 through 5 P.M. on July 25 to investors in
the U.S. by dialing 800-839-1104. Investors outside the U.S. may dial
402-998-1695. No password is required for either number.
Quest Diagnostics is the nation's leading provider of diagnostic testing,
information and services with annual revenues of $3.4 billion in 2000. The
company's diagnostic testing yields information that enables health care
professionals and consumers to make better decisions to improve health. Quest
Diagnostics offers patients and physicians the broadest access to diagnostic
testing services through its national network of approximately 30 full-service
laboratories, 150 rapid response laboratories and more than 1,300 patient
service centers, where specimens are collected. Quest Diagnostics is the
leading provider of esoteric testing, including gene-based testing, and is the
leader in routine medical testing, drugs of abuse testing, and anatomic
pathology testing. Through partnerships with pharmaceutical, biotechnology and
information technology companies, Quest Diagnostics provides support to help
speed the development of health care insights and new therapeutics.
Additional company information can be found on the Internet at:
http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause the outcome to be
materially different. Certain of these risks and uncertainties are described
in the Quest Diagnostics Incorporated 2000 Form 10-K and subsequent filings.