LH · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

LABCORP HOLDINGS INC. · 2026-10-30 · Importance 38 · Surprise 24 · In source text

The Company’s 2026 Term Loan, accounts receivable facility, and revolving credit facility bear variable interest rates. Labcorp states that higher benchmark rates would further increase interest expense on variable-rate debt, while wider credit spreads could raise the cost of new borrowing. It expects to refinance $600.0 of 3.60% senior notes maturing September 1, 2027, and expects replacement debt to carry a higher interest rate than the debt being refinanced.

Key facts

• Labcorp entered into a $750.0 million term loan on March 20, 2026, maturing March 20, 2028; on June 1, 2026, its net proceeds were used to redeem the outstanding 1.55% senior notes due 2026, with any remainder available for general corporate uses. source
• Labcorp expects to refinance its $600.0 million 3.60% senior notes due September 1, 2027, and expects new or refinanced debt to carry higher interest rates than the debt replaced, increasing interest expense. source
• Labcorp’s 2026 Term Loan bears floating interest at the company’s election: a SOFR-based rate plus 0.700% or a base rate plus 0.0%. source
• Labcorp states that further benchmark interest rate increases would increase interest expense on its variable-rate debt, and wider credit spreads could increase the cost of new debt. source
• Labcorp’s interest expense increased 5.6% in the three months ended September 30, 2026, primarily because average total debt outstanding was higher than in the comparable 2025 period. source
• Labcorp’s interest expense increased 3.7% in the nine months ended September 30, 2026, primarily because average total debt outstanding was higher than in the comparable 2025 period. source

Impact estimates