LH · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

LABCORP HOLDINGS INC. · 2026-08-05 · Importance 64 · Surprise 42 · In source text

On March 20, 2026, Labcorp entered into a $750.0 million term loan maturing March 20, 2028. The loan proceeds were used on June 1, 2026, to redeem the company’s outstanding 1.55% senior notes due 2026, with any remaining proceeds available for general corporate purposes. The term loan carries floating interest at either a SOFR-based rate plus a 0.700% margin or a base rate plus a 0.0% margin, exposing future interest costs to benchmark-rate movements.

Key facts

• On June 1, 2026, the net proceeds of the 2026 Term Loan were used to redeem the Company’s outstanding 1.55% senior notes due 2026. source
• The increase in interest expense for the three months ended June 30, 2026, was primarily due to a higher average amount of total debt outstanding during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. source
• The principal balance of the 2026 Term Loan bears interest at a floating per annum rate equal to either a SOFR-based rate plus a margin of 0.700% or a base rate plus a margin of 0.0%, at the Company’s election. source
• Under the Company’s 2026 Term Loan, revolving credit facility, indentures, and AR Facility, the Company is subject to negative covenants and is required to maintain certain leverage ratios, and the Company was in compliance with all covenants at June 30, 2026. source
• Interest expense for the three months ended June 30, 2026, was $61.1, an increase of 6.9% from $57.1 in the three months ended June 30, 2025. source
• Interest expense for the six months ended June 30, 2026, was $116.2, an increase of 2.7% from $113.1 in the corresponding period in 2025. source

Impact estimates