Loan & DebtMay 15, 2026, 03:31 PM
Encompass Health Prices $500M Senior Notes Due 2034 at 5.875%
AI Summary
Encompass Health Corp. announced the pricing of a private offering of $500 million in 5.875% senior notes due 2034. The offering is expected to close on May 29, 2026. The company plans to use the net proceeds, combined with cash on hand, to redeem $400 million of its 4.500% Senior Notes due 2028 and repay $100 million from its revolving credit facility, along with covering related fees.
Key Highlights
- Priced $500 million in aggregate principal amount of 5.875% senior notes due 2034.
- Notes were priced at 100% of the principal amount.
- Interest on the notes will be paid semiannually on June 1 and Dec. 1, starting Dec. 1, 2026.
- The offering is expected to close on May 29, 2026.
- Net proceeds will be used to redeem $400 million of 4.500% Senior Notes due 2028.
- Net proceeds will also repay $100 million from the revolving credit facility.
- The notes are being offered privately to qualified institutional buyers and non-U.S. persons.
Price Impact
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