DEBT

3 Months Ended

Mar. 31, 2020

DEBT

Short-term borrowings and the current portion of long-term debt at March 31, 2020, and December 31, 2019, consisted of the following:



	March 31, 2020			December 31, 2019
4.625% senior notes due 2020	$	415.5		$	413.7
Debt issuance costs	(0.3		)	(0.7		)
Current portion of note payable	2.2			2.2
Total short-term borrowings and current portion of long-term debt	$	417.4		$	415.2

Long-term debt at March 31, 2020, and December 31, 2019, consisted of the following:



	March 31, 2020			December 31, 2019
3.20% senior notes due 2022	$	500.0		$	500.0
3.75% senior notes due 2022	500.0			500.0
4.00% senior notes due 2023	300.0			300.0
3.25% senior notes due 2024	600.0			600.0
3.60% senior notes due 2025	1,000.0			1,000.0
3.60% senior notes due 2027	600.0			600.0
4.70% senior notes due 2045	900.0			900.0
2.30% senior notes due 2024	400.0			400.0
2.95% senior notes due 2029	650.0			650.0
2019 Term Loan	375.0			375.0
Debt issuance costs	(41.3		)	(42.2		)
Note payable	6.5			7.0
Total long-term debt	$	5,790.2		$	5,789.8

Credit Facilities

On June 3, 2019, the Company entered into a new $850.0 2019 term loan facility that matures on June 3, 2021. The 2019 term loan facility accrues interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin ranging from 0.55% to 1.175%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.0% to 0.175%. The 2019 term loan balance at March 31, 2020 and December 31, 2019, was $375.0 and $375.0, respectively. As of March 31, 2020, the effective interest rate on the 2019 term loan was 1.79%.

The Company also maintains a senior revolving credit facility consisting of a five-year facility in the principal amount of up to $1,000.0, with the option of increasing the facility by up to an additional $350.0, subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions. The revolving credit facility also provides for a subfacility of up to $100.0 for swing line borrowings and a subfacility of up to $150.0 for issuances of letters of credit. The Company is required to pay a facility fee on the aggregate commitments under the revolving credit facility, at a per annum rate ranging from 0.00% to 0.25%. The revolving credit facility is permitted to be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, acquisitions and other investments. There were no balances outstanding on the Company's current revolving credit facility at March 31, 2020, and December 31, 2019. As of March 31, 2020, the effective interest rate on the revolving credit facility was 1.97%. The credit facility expires on September 15, 2022.

Under the term loan facility and the revolving credit facility, the Company is subject to negative covenants limiting subsidiary indebtedness and certain other covenants typical for investment grade-rated borrowers, and the Company is required to maintain certain leverage ratios. The Company was in compliance with all covenants in the term loan facility and the revolving credit facility at March 31, 2020 and expects that it will remain in compliance with its existing debt covenants for the next twelve months.

The Company's availability of $923.7 at March 31, 2020, under its revolving credit facility reflects a reduction equivalent to the amount of the Company's outstanding letters of credit.

Liquidity

During the fourth quarter of 2020, $412.2 of the Company's senior notes will become payable. The Company maintains investment grade debt ratings, has strong relationships with key banks, and believes that it will be able to repay these notes with available cash on hand, cash generated from operations, borrowings under its revolving credit facility, or by refinancing the notes in the public debt market.

At March 31, 2020, the Company had $323.6 of cash and $923.7 of available borrowings under its revolving credit facility, which does not mature until 2022, and the Company was in compliance with all of its debt covenants. In May 2020, in order to obtain increased financial covenant flexibility, the Company and its lenders entered into amendments to the term loan facility and the revolving credit facility to increase the maximum leverage ratio to 5.0x debt to last twelve months EBITDA for the three month periods ending June 30, September 30 and December 31, 2020 and 4.5x for the three month period ended March 31, 2021. The amendments also provide that during any period in which the Company's leverage ratio exceeds 4.5x debt to last twelve months EBITDA (i) the company will be prohibited from consummating share repurchases, subject to limited exceptions, (ii) borrowings under the revolving credit facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.25% or a base rate plus a margin of 0.25%, (iii) the facility fee that the Company is required to pay on the

aggregate commitments under the revolving credit facility will be 0.25% per annum, and (iv) borrowings under the term loan facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.175% or a base rate plus a margin of 0.175%.

The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business. In the second half of March, daily volume for routine tests started to decline and may continue to decline as a result of decreased consumer demand driven by a significant reduction in physician office visits, the cancellation of elective medical procedures, and the negative impacts on discretionary spending resulting from the economic downturn, among other factors. In addition, the Company has experienced numerous study site closures around the world as well as delays for new patient recruitment for existing clinical trials and start-up of new clinical trials. The significance of the impact on the Company’s business is not yet certain and depends on numerous evolving factors that the Company may not be able to accurately predict.

As a result of the economic uncertainties caused by the COVID-19 pandemic, the Company is implementing several measures to improve liquidity and operating results, including reduction of hours or furloughs of its employees, hiring freezes, temporarily suspending its share repurchases, increased requirements for acquisition activity, delaying some of its planned capital expenditures, and suspending merit pay increases and U.S. employee 401K plan contributions for 2020. Based on these actions and assumptions regarding the impact of COVID-19, the Company expects that it will be able to generate sufficient liquidity to satisfy its obligations.