Quest Diagnostics offering cash for senior notes

AP News
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Posted: Nov 12, 2009 11:20 AM

Medical lab operator Quest Diagnostics Inc. said Thursday it is offering $750 million in notes and will use proceeds to buy back its senior debt.

Quest is launching a cash tender offer for its senior notes due in 2010 and 2011. The company will pay accrued and unpaid interest up to the date of the settlement, which is expected to be Nov. 20.

Quest will fund the purchase with a new offering of senior notes due in 2020 and 2040. Any funds left over from will be used for general corporate purposes like acquisitions, capital spending and baying back debt.

In morning trading, Quest stock picked up 47 cents to $58.61.