HealthSouth launches $150 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, May 26 - HealthSouth Corp. held a conference call on Thursday to launch its proposed $150 million senior unsecured term loan with opening pricing on the tranche set at Libor plus 550 basis points, according to a market source.

Furthermore, the term loan is non-callable for one year and then callable at 102 in year two and 101 in year three, the source added.

The term loan is being offered to investors at par.

Commitments are due June 6.

J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. are joint lead arrangers and joint bookrunners on the deal, with J.P. Morgan the left lead.

Proceeds from the term loan will be used to partially refinance the company's $245 million 6.875% senior notes due June 15.

HealthSouth is a Birmingham, Ala.-based provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services.

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