New Issue: HealthSouth prices $175 million tap of 5¾% notes due 2024 at 103.625

By Paul A. Harris

Portland, Ore., Sept. 4 – HealthSouth Corp. priced a $175 million add-on to its 5¾% senior notes due Nov. 1, 2024 (Ba3/BB-/) at 103.625 to yield 5.053% on Thursday, according to a syndicate source.

The reoffer price came in the middle of the 103.5 to 103.875 price talk.

Barclays was the lead left bookrunner for the public offering.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The Birmingham, Ala.-based owner and operator of hospitals plans to use the proceeds to repay its existing 7¼% notes due 2018.

Issuer:	HealthSouth Corp.
Face amount:	$175 million
Proceeds:	$181 million
Maturity:	Nov. 1, 2024
Security description:	Add-on to 5¾% senior notes due Nov. 1, 2024
Lead left bookrunner:	Barclays
Joint bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
Coupon:	5¾%
Price:	103.625
Yield:	5.053%
First call:	Nov. 1, 2017 at 102.875
Trade date:	Sept. 4
Settlement date:	Sept. 18 with accrued interest
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	103.5 to 103.875
Marketing:	Quick to market
Original issue:	$275 million priced at par in September 2012
Fungibility:	Add-on notes will be immediately fungible with the original notes
Total issue size:	$450 million

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