Quest Diagnostics 2007 Annual Report Download - page 93

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands unless otherwise indicated)
10. DEBT
Short-term borrowings and current portion of long-term debt at December 31, 2007 and 2006 consisted of
the following:
2007 2006
Borrowings under Secured Receivables Credit Facility .......................... $100,000 $300,000
Current portion of long-term debt.............................................. 63,581 16,874
Total short-term borrowings and current portion of long-term debt . . . ......... $163,581 $316,874
Long-term debt at December 31, 2007 and 2006 consisted of the following:
2007 2006
Industrial Revenue Bonds due September 2009.............................. $ 3,585 $ 5,376
Term Loan due December 2008............................................ 60,000 75,000
Senior Notes due November 2010 . . ........................................ 399,574 399,423
Senior Notes due July 2011 ................................................ 274,613 274,503
Term Loan due May 2012 ................................................. 1,385,000 -
Senior Notes due November 2015 . . ........................................ 498,747 498,587
Senior Notes due July 2017 ................................................ 374,240 -
Senior Notes due July 2037 ................................................ 420,369 -
Debentures due June 2034 ................................................. 3,013 2,957
Other . . ................................................................... 21,652 133
Total ................................................................. 3,440,793 1,255,979
Less: current portion....................................................... 63,581 16,874
Total long-term debt . ................................................. $3,377,212 $1,239,105
Senior Unsecured Revolving Credit Facility
In May 2007, the Company entered into a new $750 million senior unsecured revolving credit facility (the
“Credit Facility”) which replaced the Company’s $500 million senior unsecured revolving credit facility. The
Credit Facility matures in May 2012. Interest on the Credit Facility is based on certain published rates plus an
applicable margin that will vary over a range from 40 basis points to 125 basis points based on changes in the
Company’s public debt ratings. At the option of the Company, it may elect to enter into LIBOR-based interest
rate contracts for periods up to six months. Interest on any outstanding amounts not covered under LIBOR-based
interest rate contracts is based on an alternate base rate, which is calculated by reference to the prime rate or
federal funds rate. As of December 31, 2007 and 2006, the Company’s borrowing rate for LIBOR-based loans
was LIBOR (4.6% at December 31, 2007) plus 0.40%. The Credit Facility is guaranteed by certain of the
Company’s domestic, wholly owned subsidiaries (the “Subsidiary Guarantors”). The Credit Facility contains
various covenants, including the maintenance of certain financial ratios, which could impact the Company’s
ability to, among other things, incur additional indebtedness. At December 31, 2007 and 2006, there were no
outstanding borrowings under the Company’s unsecured revolving credit facilities.
The Company incurred $3.1 million of costs associated with the Credit Facility, which is being amortized
over the term of the related debt.
Secured Receivables Credit Facility
In May 2007, the Company increased its existing receivables securitization facility (the “Secured Receivables
Credit Facility”) from $300 million to $375 million. The Secured Receivables Credit Facility is supported by
one-year back-up facilities provided by two banks on a committed basis and matures on May 23, 2008. Interest
on the Secured Receivables Credit Facility is based on rates that are intended to approximate commercial paper
rates for highly rated issuers. At December 31, 2007 and 2006, the Company’s borrowing rate under the Secured
Receivables Credit Facility was 5.4% and 5.6%, respectively. Borrowings outstanding under the Secured
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