Laboratory Corporation of America Holdings (LabCorp) has entered into a new senior unsecured credit facility totaling $1 billion. Bank of America will act as Administrative Agent and Barclays Capital will serve as Syndication Agent for a group of financial institutions providing the facility. The new facility consists of a five-year Revolving Facility in the principal amount of $1 billion. The new facility will be used for general corporate purposes, including working capital, capital expenditures, acquisitions, funding of share repurchases and other payments, and repayment of all amounts outstanding under the Company’s previous revolving credit facility and term loan. On December 21, 2011 the Company borrowed $560 million under the Revolving Facility, and outstanding Letters of Credit totaling approximately $37.4 million were extended under the new facility. The Company's previous revolving credit facility was terminated upon the closing of the new facility.

The terms of the new facility are substantially similar to the Company’s previous revolving credit facility and include a customary financial covenant governing total leverage as well as negative covenants limiting subsidiary indebtedness and certain other items typical for investment grade-rated borrowers. The fees and interest rates on the new facilities 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.

-Richard Park