HealthSouth to call $335 million of 10¾% notes instead of $285 million

By Angela McDaniels

Tacoma, Wash., May 11 - HealthSouth Corp. said it plans to call $335 million of its 10¾% senior notes due 2016 in June instead of $285 million as previously announced.

The notes are redeemable at 105.375 on June 15.

The call will leave about $161 million of the notes outstanding. The next notes to mature will be the company's $337 million 7¼% notes in 2018 followed by its $286 million 8 1/8% notes in 2020 and its $312 million 7¾% notes in 2022, according to an 8-K filing with the Securities and Exchange Commission.

The total amount needed to redeem the 10¾% notes is about $353 million. The company will fund the redemption with the proceeds of a new $100 million term loan, borrowings under its $500 million revolving credit facility and about $77 million of cash on hand resulting from its $120 million offering of notes in March.

HealthSouth is a Birmingham, Ala.-based provider of inpatient rehabilitative health-care services.

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