HealthSouth pricing $300 million tap of 5¾% notes due 2024 Tuesday

By Paul A. Harris

Portland, Ore., Jan. 20 – HealthSouth Corp. plans to price a $300 million add-on to its 5¾% senior notes due Nov. 1, 2024 (existing ratings Ba3/BB-) on Tuesday, according to market sources.

BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the joint bookrunners for the public offering.

The notes become callable after Nov. 1, 2017 at 102.875.

The Birmingham, Ala.-based owner and operator of hospitals plans to use the proceeds to repay debt, to fund acquisitions, investments, capital expenditures and working capital and for general corporate purposes.

The original $275 million issue priced at par in September 2012.

A previous $175 million add-on priced at 103.625 to yield 5.053% on Sept. 4, 2014.

The new add-on notes will become immediately fungible with the existing notes.

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