Conversion Right Triggered for LabCorp's Liquid Yield Option(TM) Notes Due 2021 and Zero Coupon Convertible Subordinated Notes Due 2021



    BURLINGTON, N.C., April 16 /CNW/ -- Laboratory Corporation of America(R)
Holdings (LabCorp(R)) (NYSE:   LH) announced today that its zero coupon
subordinated Liquid Yield Option(TM) Notes due 2021 (LYONs) and Zero Coupon
Convertible Subordinated Notes due 2021 (Zero Coupon Notes) may be converted
as set forth below.
    LYONs are convertible into Common Stock of LabCorp at the conversion rate
of 13.4108 per $1,000 principal amount at maturity of the LYONs, subject to
the terms of the LYONs and the Indenture, dated as of September 11, 2001
between LabCorp and The Bank of New York, as trustee (Trustee) and conversion
agent. The Zero Coupon Notes are convertible into cash and Common Stock of
LabCorp, if any, subject to the terms of the Zero Coupon Notes and the
Indenture, dated as of October 24, 2006 between LabCorp, the Trustee and the
conversion agent.
    In order to exercise the option to convert all or a portion of the LYONs
or Zero Coupon Notes, holders must validly surrender their LYONs or Zero
Coupon Notes at any time during the calendar quarter through the close of
business at 5:00 p.m., New York City time, on Monday, July 2, 2007. The
Trustee has informed LabCorp that, as of this date, all custodians and
beneficial holders of the LYONs and Zero Coupon Notes hold the LYONs and Zero
Coupon Notes through Depository Trust Company (DTC) accounts and that there
are no certificated LYONs or Zero Coupon Notes in non-global form.
Accordingly, all LYONs and Zero Coupon Notes surrendered for conversion must
be delivered through the transmittal procedures of DTC.
    This is the third consecutive quarter during which the LYONS and the Zero
Coupon Notes have been convertible.  To date, an insignificant number of LYONS
and Zero Coupon Notes have been converted.  There is $1,070,000 aggregate
principal amount of LYONs outstanding at March 31, 2006, which upon conversion
LabCorp would be required to settle in shares as described above. Should Zero
Coupon Notes be converted, LabCorp would be required to pay holders in cash
for the accreted principal amount of the securities to be converted, with the
remaining amount, if any, to be satisfied with shares of Common Stock.  The
shares required for settlement of the LYONs and the Zero Coupon Notes are
already included in LabCorp's computation of fully diluted earnings per share.
    On March 19, 2007, LabCorp announced that for the period of March 12,
2007 to September 11, 2007, the LYONs will, subject to the terms of the LYONs,
accrue contingent cash interest at a rate of no less than 0.125% of the
average market price of a LYON for the five trading days ended September 7,
2006, in addition to the continued accrual of the original issue discount.
Similarly, the Zero Coupon Notes will also accrue contingent cash interest
over that period using the same calculation method as described for the LYONs.
 Contingent cash interest, which the Company has determined to be
approximately $1.22 per Note, will be payable to holders of the LYONs or Zero
Coupon Notes as of the record date, which is August 27, 2007.  The payment of
contingent cash interest is expected to be made on September 11, 2007.

    
    About LabCorp(R)
    
    Laboratory Corporation of America(R) Holdings, a S&P 500 company, is a
pioneer in commercializing new diagnostic technologies and the first in its
industry to embrace genomic testing.  With annual revenues of $3.6 billion in
2006, over 25,000 employees nationwide, and more than 220,000 clients, LabCorp
offers clinical assays ranging from routine blood analyses to HIV and genomic
testing. LabCorp combines its expertise in innovative clinical testing
technology with its Centers of Excellence: The Center for Molecular Biology
and Pathology, National Genetics Institute, Inc., ViroMed Laboratories, Inc.,
The Center for Esoteric Testing, DIANON Systems, Inc., US LABS, and Esoterix
and its Colorado Coagulation, Endocrine Sciences, and Cytometry Associates
laboratories.  LabCorp clients include physicians, government agencies,
managed care organizations, hospitals, clinical labs, and pharmaceutical
companies. To learn more about our growing organization, visit our Web site
at: http://www.LabCorp.com .

    Each of the above forward-looking statements is subject to change based
on various important factors, including without limitation, competitive
actions in the marketplace and adverse actions of governmental and other
third-party payors.  Actual results could differ materially from those
suggested by these forward-looking statements. Further information on
potential factors that could affect LabCorp's financial results is included in
the Company's Form 10-K for the year ended December 31, 2006, and subsequent
SEC filings.





For further information:

For further information: Scott Fleming, +1-336-436-4879, or Pam Sherry, 
+1-336-436-4855, both of Laboratory Corporation of America Holdings Web Site:
http://www.labcorp.com

Organization Profile

LABORATORY CORPORATION OF AMERICA HOLDINGS

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890