HealthSouth changes payout for two series in tenders for all senior, senior subordinated notes

By Jennifer Chiou

New York, Feb. 10 - HealthSouth Corp. announced it modified the payout for two series of notes in its cash tender for any and all of its $180.3 million of 7 3/8% senior notes due 2006, $343 million of 8½% senior notes due 2008, $250 million of 7% senior notes due 2008, $319.26 million of 10¾% senior subordinated notes due 2008, $347.7 million of 8 3/8% senior notes due 2011 and $908.7 million of 7 5/8% senior notes due 2012.

For each $1,000 principal amount, the company said it will now pay $1,084.81 instead of $1,082.50 for the 8 3/8% notes and $1,058.43 compared to $1,062.50 for the 7 5/8% notes.

The company previously announced it will pay $1,012.50 for the 7 3/8% notes, $1,058.75 for the 8½% notes, $1,037.50 for the 7% notes and $1,037.50 for the 10¾% notes.

HealthSouth is also soliciting consents to proposed amendments for the notes' indentures to eliminate substantially all of the restrictive covenants and amend certain events of default.

The payouts include a $50.00 consent payment for those who tender their holdings before 5 p.m. ET on Feb. 15.

The offers, part of the company's recapitalization plan, expire at midnight ET on March 2, unless extended.

The offers are conditioned upon, among other requirements, financing and tenders from holders of a majority of the notes.

Global Bondholder Services Corp. is the depositary and information agent (call collect 212 430-3774 or 866 804-2200). Questions may be directed to Merrill Lynch & Co. (888 ML4-TNDR or call collect 212 449-4914), Citigroup Corporate and Investment Banking (800 558-3745 or call collect 212 723-6106) or J.P. Morgan Securities Inc. (866 834-8666 or call collect 212 834-4388).

The company started the offer on Feb. 2.

Based in Birmingham, Ala., HealthSouth provides outpatient surgery, diagnostic imaging and rehabilitative health care services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.