QUEST DIAGNOSTICS INCDGX
QUEST DIAGNOSTICS INC Debt Disclosure
DEBT
Long-term debt (including finance lease obligations) as of December 31, 2025 and 2024 consisted of the following:
| 2025 | 2024 | ||||||||||
3.50% Senior Notes due March 2025 | $ | — | $ | 601 | |||||||
3.45% Senior Notes due June 2026 | 501 | 503 | |||||||||
4.60% Senior Notes due December 2027 | 400 | 400 | |||||||||
4.20% Senior Notes due June 2029 | 499 | 499 | |||||||||
4.625% Senior Notes due December 2029 | 600 | 599 | |||||||||
2.95% Senior Notes due June 2030 | 799 | 799 | |||||||||
2.80% Senior Notes due June 2031 | 564 | 550 | |||||||||
6.40% Senior Notes due November 2033 | 756 | 750 | |||||||||
5.00% Senior Notes due December 2034 | 840 | 813 | |||||||||
6.95% Senior Notes due July 2037 | 175 | 175 | |||||||||
5.75% Senior Notes due January 2040 | 246 | 246 | |||||||||
4.70% Senior Notes due March 2045 | 300 | 300 | |||||||||
| Other | 21 | 17 | |||||||||
| Debt issuance costs | (30) | (35) | |||||||||
| Total long-term debt | 5,671 | 6,217 | |||||||||
| Less: Current portion of long-term debt | 504 | 602 | |||||||||
| Total long-term debt, net of current portion | $ | 5,167 | $ | 5,615 | |||||||
Secured Receivables Credit Facility
The Company is party to a $600 million secured receivables credit facility (the “Secured Receivables Credit Facility”), which it amended during November 2025 in order to extend the maturity to November 2027. The facility includes a $200 million uncommitted accordion which, if utilized, brings the total capacity under the facility to $800 million. The entire facility can be used for borrowings. Additionally, the Company can choose to utilize up to $150 million of such capacity to issue letters of credit (see Note 18). Issued letters of credit reduce the available borrowing capacity under the facility. Interest on borrowings under the facility is based on either commercial paper rates for highly-rated issuers or the adjusted Term Secured Overnight Financing Rate ("Term SOFR"), plus a spread of 0.80%. Borrowings under the Secured Receivables Credit Facility are collateralized by certain domestic receivables. The Secured Receivables Credit Facility is subject to customary affirmative and negative covenants and certain financial covenants with respect to the receivables that comprise the borrowing base and
secure the borrowings under the facility. As of both December 31, 2025 and 2024, there were no outstanding borrowings under the Secured Receivables Credit Facility.
Senior Unsecured Revolving Credit Facility
During April 2025, the Company amended the agreement for its $750 million senior unsecured revolving credit facility (the “Credit Facility” or "Senior Unsecured Revolving Credit Facility") to extend the maturity to April 2030, while maintaining the same borrowing capacity under the facility of $750 million. Under the Credit Facility, the Company can issue letters of credit totaling $150 million (see Note 18). Issued letters of credit reduce the available borrowing capacity under the Credit Facility. Additionally, the Credit Facility includes an additional $500 million uncommitted accordion which, if utilized, brings the total capacity under the facility to $1.3 billion. Interest on the Credit Facility is based on certain published rates plus an applicable margin based on changes in the Company's public debt ratings. At the option of the Company, it may elect to lock into Term SOFR-based interest rate contracts for periods up to six months. For interest on any U.S. Dollar-denominated outstanding amounts not covered under Term SOFR-based interest rate contracts, the Company can opt for an alternate base rate, which is calculated by reference to the prime rate, the federal funds rate or an adjusted Term SOFR rate. The Company also has the option to borrow in other currencies. As of December 31, 2025 , the Company's borrowing rate for Term SOFR-based loans under the Credit Facility was adjusted Term SOFR plus 1.00%. The Credit Facility contains various covenants, including the maintenance of a financial leverage ratio, which could impact the Company's ability to, among other things, incur additional indebtedness. As of both December 31, 2025 and 2024, there were no outstanding borrowings under the Senior Unsecured Revolving Credit Facility.
Repayment of Senior Notes
During the year ended December 31, 2025, the Company repaid in full the outstanding indebtedness under the Company's $600 million of 3.50% senior notes, which matured on March 30, 2025.
3.45% Senior Notes due June 2026
The Company has $500 million of 3.45% senior notes due June 2026. The senior notes are included in current portion of long-term debt in the Company's December 31, 2025 consolidated balance sheet. Such notes were included in long-term debt in the Company's December 31, 2024 consolidated balance sheet.
All of the senior notes are unsecured obligations of the Company and rank equally with the Company's other senior unsecured obligations. None of the Company's senior notes have a sinking fund requirement.
The Company may redeem its outstanding senior notes prior to scheduled maturity, as a whole or in part, at a redemption price equal to the present value of the remaining scheduled payments of principal and interest, except for certain notes for which the Company also has an option to redeem such instruments at par value on or after dates specified in the indentures governing the notes ("the par value redemption option"). For notes with the par value redemption option, if such notes are redeemed prior to the specified dates, the redemption price calculations exclude any interest that would have been due after such dates.
Maturities of Long-Term Debt
As of December 31, 2025, long-term debt matures as follows:
| Year Ending December 31, | |||||
| 2026 | $ | 503 | |||
| 2027 | 403 | ||||
| 2028 | 1 | ||||
| 2029 | 1,101 | ||||
| 2030 | 801 | ||||
| Thereafter | 2,887 | ||||
| Total maturities of long-term debt | 5,696 | ||||
| Unamortized discount | (10) | ||||
| Debt issuance costs | (30) | ||||
| Fair value basis adjustments attributable to hedged debt | 15 | ||||
| Total long-term debt | 5,671 | ||||
| Less: Current portion of long-term debt | 504 | ||||
| Total long-term debt, net of current portion | $ | 5,167 | |||
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.