LabCorp 2014 Annual Report Download - page 61

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59
On November 1, 2013, the Company issued $700.0 in new senior notes pursuant to the Company’s effective shelf registration
on Form S-3. The new senior notes consisted of $400.0 aggregate principal amount of 2.50% Senior Notes due 2018 and $300.0
aggregate principal amount of 4.00% Senior Notes due 2023. The net proceeds were used to repay all of the outstanding borrowings
under the Company’s former Revolving Credit Facility and for general corporate purposes.
The Senior Notes due 2018 and Senior Notes due 2023 bear interest at the rate of 2.50% per annum and 4.00% per annum,
respectively, payable semi-annually on May 1 and November of each year, commencing on May 1, 2014.
On August 23, 2012, the Company issued $1,000.0 in new senior notes pursuant to the Company's effective shelf registration
statement on Form S-3. The new senior notes consisted of $500.0 aggregate principal amount of 2.20% Senior Notes due 2017
and $500.0 aggregate principal amount of 3.75% Senior Notes due 2022. The net proceeds were used to repay $625.0 of the
outstanding borrowings under the Company's former Revolving Credit Facility. The remaining proceeds are available for other
general corporate purposes.
The Senior Notes due 2017 and Senior Notes due 2022 bear interest at the rate of 2.20% per annum and 3.75% per annum,
respectively, payable semi-annually on February 23 and August 23 of each year, commencing February 23, 2013.
During 2014, the Company purchased $269.0 of its stock representing 2.7 shares. As of December 31, 2014, the Company
had remaining outstanding authorization from the Board of Directors to purchase $789.5 of Company common stock.
During 2014, the Company settled notices to convert $21.9 aggregate principal amount at maturity of its zero-coupon
subordinated notes with a conversion value of $28.7. The total cash used for these settlements was $18.9 and the Company also
issued 0.1 additional shares of common stock.
On September 12, 2014, the Company announced that for the period of September 12, 2014 to March 11, 2015, the zero-coupon
subordinated notes will accrue contingent cash interest at a rate of no less than 0.125% of the average market price of a zero-
coupon subordinated note for the five trading days ended September 9, 2014, in addition to the continued accrual of the original
issue discount.
On January 2, 2015, the Company announced that its zero-coupon subordinated notes may be converted into cash and common
stock at the conversion rate of 13.4108 per $1,000 principal amount at maturity of the notes, subject to the terms of the zero-
coupon subordinated notes and the Indenture, dated as of October 24, 2006 between the Company and The Bank of New York
Mellon, as trustee and conversion agent. In order to exercise the option to convert all or a portion of the zero-coupon subordinated
notes, holders are required to validly surrender their zero-coupon subordinated notes at any time during the calendar quarter
beginning January 1, 2015, through the close of business on the last business day of the calendar quarter, which is 5:00 p.m., New
York City time, on Tuesday, March 31, 2015. If notices of conversion are received, the Company plans to settle the cash portion
of the conversion obligation with cash on hand and/or borrowings under the new revolving credit facility.
Credit Ratings
The Company’s debt ratings of Baa2 from Moody’s and BBB from Standard and Poor’s contribute to its ability to access
capital markets.
Contractual Cash Obligations
Payments Due by Period
2016- 2018- 2020 and
Total 2015 2017 2019 thereafter
Operating lease obligations $ 335.8 $ 109.9 $ 139.7 $ 48.8 $ 37.4
Contingent future licensing payments (a) 17.0 4.3 7.3 4.9 0.5
Minimum royalty payments 4.9 0.8 1.7 1.7 0.7
Zero-coupon subordinated notes (b) 93.9 93.9———
Scheduled interest payments on Senior Notes 2,306.0 157.7 385.2 343.0 1,420.1
Scheduled interest payments on Term Loan 48.0 13.6 23.5 10.8 0.1
Long-term debt, other than revolving credit facility 2,959.2 256.9 838.9 413.8 1,449.6
Total contractual cash obligations (c), (d), and (e) $ 5,764.8 $ 637.1 $ 1,396.3 $ 823.0 $ 2,908.4