HealthSouth to start roadshow Tuesday for $1 billion two-part deal via Merrill, JP Morgan, Citigroup

By Paul A. Harris

St. Louis, May 26 - HealthSouth Corp. will begin a roadshow on Tuesday for its $1 billion two-part offering of senior notes, according to an informed source.

Pricing is expected on June 8.

The company is offering a tranche of 10-year fixed-rate notes, with five years of call protection, and a tranche of eight-year floating-rate notes, with two years of call protection.

Merrill Lynch, JP Morgan and Citigroup are joint bookrunners for the notes, which will be sold via Rule 144A with registration rights and via Regulation S. Deutsche Bank Securities, Goldman Sachs & Co. and Wachovia Securities are co-managers.

Proceeds along with proceeds from a $400 million convertible preferred deal priced in March will be used to refinance the $1.3 billion bridge loan incurred in February to fund a complete debt recapitalization of the company.

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

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