Encompass Health to price $500 million two-part add-on on Tuesday

By Paul A. Harris

Portland, Ore., May 12 – Encompass Health Corp. plans to price $500 million of senior notes (existing ratings B1/B+) by means of tapping two existing issues in a Tuesday drive-by trailing an early afternoon conference call with investors, according to a syndicate source.

The public offering includes a $250 million add-on to its 4½% senior notes due Feb. 1, 2028, which become callable on Feb. 1, 2023 at 102.25 (the original $500 million issue priced Sept. 9, 2019).

Encompass Health also is offering a $250 million add-on to its 4¾% senior notes due Feb. 1, 2030, which become callable on Feb. 1, 2025 at 102.375 (the original $500 million issue also priced on Sept. 9, 2019).

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

The Birmingham, Ala.-based health care services provider plans to use the proceeds, together with cash on hand, to repay $350 million under its revolving credit facility, with any remaining proceeds to be used for working capital and other general corporate purposes.

© 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.