Last $108.25 USD
Change Today +0.56 / 0.52%
Volume 822.6K
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As of 8:04 PM 12/26/14 All times are local (Market data is delayed by at least 15 minutes).

laboratory crp of amer hldgs (LH) Key Developments

Laboratory Corporation of America Holdings Enters into an Amendment and Restatement of its Existing Senior Revolving Credit Facility

On December 19, 2014, Laboratory Corporation of America Holdings entered into an amendment and restatement of its existing senior revolving credit facility, which was originally entered into on December 21, 2011 and for which Bank of America, N.A. served as swing line lender, letter of credit issuer and administrative agent for a group of financial institutions. The senior revolving credit facility, as amended and restated, is referred to in this report as the new revolving credit facility. The new revolving credit facility consists of a five-year revolving facility in the principal amount of up to $1.0 billion, with the ability to increase the facility by up to an additional $250 million, subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions. The new revolving credit facility also provides for a subfacility of up to $100 million for swing line borrowings and a subfacility of up to $125 million for issuances of letters of credit. Bank of America, N.A., is acting as swing line lender and a letter of credit issuer and as administrative agent for a group of financial institutions providing the revolving credit facility. The new revolving credit facility is permitted to be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, and acquisitions and other investments. On December 19, 2014, the company also entered into a five-year term loan credit facility in the principal amount of $1.0 billion. Bank of America, N.A. will act as administrative agent for a group of financial institutions providing the term loan facility. The term loan credit facility is permitted to be used to pay all or a portion of the cash consideration of the Company's proposed acquisition (the Acquisition) of Covance Inc., a Delaware corporation (Covance), and to pay related fees and expenses. The term loan credit facility will be advanced in full on the date of the Company's completion of the Acquisition (the Acquisition Closing Date), with such advances being subject only to certain customary funds provisions. If the Acquisition does not close on or before June 2, 2015, then the commitments under the term loan credit facility will automatically terminate. Under the New Credit Facilities, which have affirmative and negative covenants that are substantially identical to each other, the company is subject to negative covenants limiting subsidiary indebtedness and certain other covenants typical for investment grade-rated borrowers and the company is required to maintain a leverage ratio that varies depending on whether the Acquisition Closing Date has occurred. Prior to the Acquisition Closing Date, the leverage ratio must be no greater than 3.75 to 1.00, which prior to the Acquisition Closing Date is calculated excluding the principal amount of certain senior notes issued for the purpose of funding the Acquisition. From and after the Acquisition Closing Date, the leverage ratio must be no greater than 4.75 to 1.00 with respect to the last day of each of the first four fiscal quarters ending on or after the Acquisition Closing Date, 4.25 to 1.00 with respect to the last day of each of the fifth through eighth fiscal quarters ending after the Acquisition Closing Date, and 3.75 to 1.00 with respect to the last day of each fiscal quarter ending thereafter. When advanced, the term loan credit facility will accrue interest at a per annum rate equal to, at the company's election, either a LIBOR rate plus a margin ranging from 1.125% to 2.00%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.125% to 1.00%. Advances under the new revolving credit facility will accrue interest at a per annum rate equal to, at the company's election, either a LIBOR rate plus a margin ranging from 1.00 to 1.60%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.00% to 0.60%. Fees are payable on outstanding letters of credit under the new revolving credit facility at a per annum rate equal to the applicable margin for LIBOR loans, and the Company is required to pay a facility fee on the aggregate commitments under the new revolving credit facility, at a per annum rate ranging from 0.125% to 0.40%. In each case, the interest margin applicable to the New Credit Facilities, and the facility fee and letter of credit fees payable under the new revolving credit facility, are based on the Company's senior credit ratings as determined by Standard & Poor's and Moody's, which are currently BBB+ and Baa2, respectively. Until the earlier of the Acquisition Closing Date or the date the term loan credit facility commitments are terminated, a ticking fee shall accrue on the unfunded term loan credit facility commitments in an amount equal to 0.15% per annum of such unfunded commitments. On December 19, 2014, there were no outstanding borrowings under the new revolving credit facility and existing letters of credit totaling approximately $42 million were continued under the facility.

Laboratory Corp. of America Holdings(NYSE:LH) dropped from S&P 500 Growth Index

Laboratory Corp. of America Holdings(NYSE:LH) dropped from S&P 500 Growth Index

Laboratory Corp. of America Holdings Introduces Test to Identify Enterovirus D-68 (EV-D68)

Laboratory Corp. of America Holdings announced the availability of a reflex test to identify enterovirus D68 (EV-D68), which is associated with severe respiratory illness that primarily affects children. Enterovirus (EV) infections cause a wide spectrum of both common and uncommon illnesses. EVs cause millions of symptomatic infections annually in the United States. Most non-neurological infections with these viruses are relatively benign, but respiratory tract infections caused by EV-D68 can be more serious, particularly among pediatric patients with asthma.

Laboratory Corp. of America Holdings Announces Management Changes

On December 3, 2014, the Board of Directors of Laboratory Corporation of America Holdings designated Edward T. Dodson, age 61, as the Principal Accounting Officer of the company, effective immediately. In this role, Mr. Dodson will serve on the Company’s Management Committee. Mr. Dodson will continue in his role as Senior Vice President, Chief Accounting Officer, a position he has held since June 2005. Glenn A. Eisenberg, Executive Vice President, Chief Financial Officer and Treasurer of the company, who previously also served as Principal Accounting Officer, will no longer serve in that capacity but will continue to serve as the Company’s Principal Financial Officer.

Covance Inc., Laboratory Corp. of America Holdings - M&A Call

Covance Inc., Laboratory Corp. of America Holdings - M&A Call

 

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