By Paul A. Harris
Portland, Ore., Sept. 30 – Encompass Health Corp. priced a $400 million issue of 10.5-year senior notes (B1/B+) at par to yield 4 5/8% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4¾% area. Initial talk was in the 4 7/8% area.
The deal was four-times oversubscribed, a trader said.
Truist Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC and Wells Fargo Securities LLC.
The Birmingham, Ala.-based provider of inpatient rehabilitative health care services plan to use the proceeds to redeem its 5¾% senior notes due 2024.
| Issuer: | Encompass Health Corp.
|
| Amount: | $400 million
|
| Maturity: | April 1, 2031
|
| Securities: | Senior notes
|
| Left bookrunner: | Truist Securities Inc.
|
| Joint bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC and Wells Fargo Securities LLC
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Call protection: | 5.5 years
|
| Trade date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | SEC registered
|
| Price talk: | 4¾% area
|
| Marketing: | Drive-by
|
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