S&P gives Encompass Health notes B+

S&P said it assigned its B+ issue-level rating and recovery rating of 5 to Encompass Health Corp.’s $800 million new two-part senior unsecured notes. The 5 recovery rating indicates S&P’s expectation for a modest (10%-30%; rounded estimate: 25%) recovery in the event of a payment default.

Proceeds will be used to repay debt, buy Home Health Holdings rollover shares and stock appreciation rights, and repay a portion of senior unsecured notes due 2024.

Encompass’ other ratings remain unchanged, S&P said.

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