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HealthSouth buys all floaters due 2014 tendered through early deadline, issues redemption notice
By Angela McDaniels
Tacoma, Wash., Dec. 7 - HealthSouth Corp. has repurchased $312.6 million, or 94.8%, of its $329.6 million of floating-rate senior notes due 2014, according to an 8-K filing with the Securities and Exchange Commission.
The amount repurchased represents the principal amount of notes the company had received as of 5 p.m. ET on Nov. 30, which was the early tender deadline in a tender offer and consent solicitation that began Nov. 16.
HealthSouth is soliciting consents to amend the indenture governing the notes to eliminate substantially all of the restrictive covenants and some events of default, to reduce the notice period required for redemption of the notes to five days and to make other related amendments.
The amount of consents received as of the early deadline was enough to amend the indenture, and the company has entered into a supplement indenture.
The tender offer will expire at midnight ET on Dec. 14.
The total payment was $1,030 for each $1,000 principal amount of notes tendered by the early tender deadline. This amount includes an early tender payment of $30.
Holders who tender after the early deadline will receive par.
All tendering holders will receive accrued interest to the applicable payment date.
HealthSouth used the proceeds from a $290 million issue of 8 1/8% senior notes due 2020 to buy the notes.
Call option
The company also announced that it will redeem any notes that are not tendered into the offer.
The redemption price is 103% of par, and the redemption date will be Dec. 15.
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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