Moody’s rates Encompass Health notes B1

Moody’s Investors Service said it assigned B1 ratings to each of Encompass Health Corp.’s new unsecured note offerings.

Proceeds expected to be $800 million will be used to repay revolver borrowings, including those used to fund the July 2019 acquisition of Alacare, and retire roughly $200 million of the 2024 unsecured notes. Remaining proceeds will be used to pay cash distributions totaling $219 million relating to Home Health Holdings rollover shares and stock appreciation rights, Moody’s said.

Encompass’ existing ratings are unchanged.

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