HealthSouth begins tender offer, consent bid for floaters due 2014

By Susanna Moon

Chicago, Nov. 16 - HealthSouth Corp. said it began a tender offer to purchase for cash any and all of its $329.6 million outstanding floating-rate senior notes due 2014.

The offer will expire at midnight ET on Dec. 14.

HealthSouth is also soliciting consents to amend the indenture governing the notes to eliminate or make less restrictive substantially all of the restrictive covenants and eliminate other related provisions.

The total payment will be $1,030 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 30, the early tender deadline. The total amount includes an early tender payment of $30.

Holders also will receive accrued interest to the payment date.

HealthSouth said it plans to fund the purchase with proceeds from new debt financing and cash on hand.

The tender offer and consent solicitation are conditioned upon completion of new debt financing resulting in the issuance of at least $290 million, the tender of notes representing at least a majority of the notes outstanding and the execution of a supplemental indenture implementing the proposed amendments following receipt of the required consents.

J.P. Morgan Securities Inc. (800 245-8812) is the dealer manager and solicitation agent for the tender offer and consent solicitation. Georgeson Inc. (800 868-1361) is the information agent.

HealthSouth is a Birmingham, Ala.-based provider of inpatient rehabilitation services.

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