Quest Diagnostics 2009 Annual Report Download - page 93

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10. DEBT
Long-term debt at December 31, 2009 and 2008 consisted of the following:
2009 2008
Industrial Revenue Bonds due September 2009.............................. $ - $ 1,800
Senior Notes due November 2010 . . ........................................ 165,482 399,724
Senior Notes due July 2011 ................................................ 159,170 274,724
Term Loan due May 2012 ................................................. 742,000 1,092,000
Senior Notes due November 2015 . . ........................................ 499,067 498,907
Senior Notes due July 2017 ................................................ 374,400 374,320
Senior Notes due January 2020 ............................................ 478,115 -
Senior Notes due July 2037 ................................................ 420,683 420,526
Debentures due June 2034 ................................................. - 3,070
Senior Notes due January 2040 ............................................ 243,088 -
Other . . ................................................................... 25,294 18,160
Total long-term debt . ................................................. 3,107,299 3,083,231
Less: current portion of long-term debt ..................................... 170,507 5,142
Total long-term debt, net of current portion ............................ $2,936,792 $3,078,089
Early Extinguishment of Debt
For the years ended December 31, 2009 and 2008, the Company recorded $20.4 million and $0.9 million of
pre-tax charges related to the early extinguishment of debt, primarily related to the Company’s June 2009 and
November 2009 debt tender offers, the repayment of borrowings outstanding under the Term Loan due 2012 in
2009 and 2008, and the 2009 repayment of the remaining principal outstanding under the Debentures due June
2034.
June 2009 Debt Tender Offer
On May 19, 2009, the Company commenced a cash tender offer to purchase up to $200 million aggregate
principal amount of its 5.125% Senior Notes due 2010 and 7.50% Senior Notes due 2011. On June 16, 2009, the
Company finalized its cash tender offer (the “June 2009 Debt Tender Offer”) by purchasing $174 million
aggregate principal amount of its 5.125% Senior Notes Due 2010 and $26 million aggregate principal amount of
its 7.50% Senior Notes due 2011 that resulted in pre-tax losses of $4.8 million and $1.5 million, respectively.
The aggregate pre-tax loss of $6.3 million includes the write-off of $0.5 million of deferred financing fees and
unamortized discounts and cash payments of $5.8 million related to premiums and other costs to purchase the
5.125% Senior Notes due 2010 and the 7.5% Senior Notes due 2011 and is included in “other expense, net.” The
June 2009 Debt Tender Offer was financed with cash on-hand and $150 million of borrowings under the Secured
Receivables Credit Facility discussed below.
November 2009 Debt Tender Offer
In connection with the 2009 Senior Notes offering which is discussed below, on November 12, 2009, the
Company commenced a cash tender offer to purchase any and all of its outstanding 5.125% Senior Notes due
2010, and any and all of its outstanding 7.50% Senior Notes due 2011. On November 20, 2009, the Company
finalized its cash tender offer (the “November 2009 Debt Tender Offer”) by purchasing $61 million aggregate
principal amount of its 5.125% Senior Notes Due 2010 and $89 million aggregate principal amount of its 7.50%
Senior Notes due 2011 that resulted in pre-tax losses of $2.6 million and $9.4 million, respectively. The
aggregate pre-tax loss of $12.1 million includes the write-off of $0.3 million of deferred financing fees and
unamortized discounts and cash payments of $11.8 million related to premiums and other costs to purchase the
5.125% Senior Notes due 2010 and the 7.5% Senior Notes due 2011 and is included in “other expense, net.” The
November 2009 Debt Tender Offer was financed with the net proceeds from the Company’s 2009 Senior Notes
offering which is discussed below.
F-23
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)