- On heels of the previously announced spinoff of Fortrea into a separate publicly traded company, Fortrea Holdings Inc., a wholly owned subsidiary of Labcorp (NYSE:LH) has priced an offering of $570 million of senior secured notes due 2030.
- The notes will bear interest at a rate of 7.500% per annum, payable semiannually in cash in arrears on January 1 and July 1 of each year, commencing January 1, 2024, and will mature on July 1, 2030.
- In addition to paying a portion of the fees and costs associated with this offering and the transactions related to the Spinoff, net proceeds from the notes offering will be used to fund a portion of an anticipated $1,605 million cash distribution to Labcorp as partial consideration for the assets that will be contributed to Fortrea in connection with the Spinoff.
- Upon closure of the Spinoff, the notes will be jointly and severally guaranteed, on a senior secured basis, by each of Fortrea's existing and subsequently acquired or organized direct or indirect wholly owned subsidiaries.
- The closing of the offering is expected to occur on or about June 27, 2023, subject to customary closing conditions.
More on Labcorp's spinoff
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