TETERBORO, N.J., Nov. 19 /PRNewswire/ -- Quest Diagnostics Incorporated
(NYSE: DGX), the nation's leading provider of diagnostic testing, information
and services, today announced an offering of $225 million of 20-year
contingent convertible bonds. In connection with the offering, Quest
Diagnostics has granted a $25 million over-allotment option to the
underwriter.
The notes will pay a fixed rate of interest and will be convertible into
Quest Diagnostics common stock if the market price of the shares reaches
specified thresholds. The lead underwriter for the offering is Banc of America
Securities LLC. Quest Diagnostics expects the transaction to be mildly
accretive to 2002 earnings.
Net proceeds of the offering will be used by the company to repay amounts
outstanding under its accounts receivable facility. The accounts receivable
facility will remain available to the company for general corporate purposes,
including acquisitions.
The security is being offered as part of a shelf registration statement
previously filed and declared effective with the Securities and Exchange
Commission. Copies of the prospectus relating to the offering can be obtained
from Bank of America Securities LLC, 9 West 57th Street, 40th Floor, New York,
N.Y. 10019
Quest Diagnostics is the nation's leading provider of diagnostic testing,
information and services with $3.4 billion in annual revenues. 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 non-hospital-
based anatomic pathology testing. Quest Diagnostics empowers health care
organizations and clinicians with state-of-the-art connectivity solutions that
improve practice management. 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 listed in
the Quest Diagnostics Incorporated 2000 Form 10-K and subsequent filings.
Contacts: Cathy Doherty (Investors): 201.393.5030
Gary Samuels (Media): 201.393.5700
SOURCE Quest Diagnostics
CONTACT: investors, Cathy Doherty, +1-201-393-5030, or media, Gary
Samuels, +1-201-393-5700, both for Quest Diagnostics Incorporated/