01—Abstract
Summary
Summary of the 8-K filed March 20, 2026. Cited figures are marked; the original filing is the authoritative source.
On March 20, 2026, Labcorp Holdings Inc. (the "Company"), as parent guarantor, and Laboratory Corporation of America Holdings ("LCAH"), as borrower, entered into a Term Loan Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of lenders.
The agreement provides for a $750 milliona senior unsecured term loan scheduled to mature on March 20, 2028, which was fully funded on the Closing Date. The Term Loan bears interest at a floating rate, either a SOFR-based rate plus a 0.700% margin or a base rate plus a 0% margin. The Credit Agreement includes customary representations, warranties, and affirmative and negative covenants, including restrictions on liens, mergers and consolidations, and dispositions of substantially all assets, subject to exceptions.
It also requires the Company to maintain a consolidated leverage ratio of not more than 4.0 to 1.0 as of each quarter-end. That ratio may be raised to 4.5 to 1.0 for four fiscal quarters following a material acquisition, a "Leverage Holiday," which LCAH may elect an unlimited number of times, though a further election requires the ratio to return to 4.0 to 1.0 or below for at least two fiscal quarters first.
The filing also notes that some lenders and their affiliates have provided and may continue to provide commercial banking, investment banking, and other financial advisory services to the Company for customary fees. The full Credit Agreement is filed as Exhibit 10.1, with certain exhibits and schedules omitted under Item 601(a)(5) of Regulation S-K.
02—Key points
Key Highlights
- Entered a $750 million senior unsecured Term Loan Credit Agreement dated March 20, 2026, fully funded on the Closing Date
- Term Loan matures March 20, 2028
- Interest is floating: SOFR-based rate plus a 0.700% margin, or base rate plus a 0% margin
- Financial covenant requires a consolidated leverage ratio of not more than 4.0 to 1.0, with an option to increase to 4.5 to 1.0 for four fiscal quarters after a material acquisition (Leverage Holiday)
- Covenants restrict subsidiaries (other than LCAH) that do not guarantee the Term Loan from incurring debt, and restrict liens, mergers, consolidations, and dispositions of substantially all assets, subject to exceptions
- Events of default are customary for this type of facility; upon default, outstanding amounts may be accelerated
- Wells Fargo Bank, National Association serves as administrative agent; Wells Fargo Securities, LLC is sole bookrunner, and PNC entities serve as joint lead arranger and syndication agent
03—Questions
Frequently Asked Questions
Who are the borrower and guarantor under the new Term Loan?
Laboratory Corporation of America Holdings (LCAH) is the borrower, and Labcorp Holdings Inc. is the parent guarantor.
What are the pricing terms of the $750 million Term Loan?
The loan bears interest at a floating rate, either a SOFR-based rate plus a margin of 0.700% or a base rate plus a margin of 0%.
What financial covenant applies to the Company?
The Company must maintain a consolidated leverage ratio of not more than 4.0 to 1.0 as of the last day of each quarterly period. This may be increased to 4.5 to 1.0 for four fiscal quarters following a material acquisition, and LCAH may do so an unlimited number of times, subject to a requirement that the ratio return to 4.0 to 1.0 or below for at least two fiscal quarters before another election.
Is the Term Loan secured?
No. The filing describes the Term Loan as a senior unsecured term loan.
Do the lenders have other relationships with the Company?
Yes. The filing states that some of the financial institutions party to the Credit Agreement and their affiliates have performed, and may in the future perform, commercial banking, investment banking, and other financial advisory services for the Company and its subsidiaries, for which they have received and will receive customary fees and commissions.
04—Continue