Encompass Health launches $100M private offering of 5.875% senior notes due 2034
Encompass Health Corp. (NYSE: EHC) announced Aug. 10 that it has commenced a private offering of an additional $100 million in aggregate principal amount of 5.875% senior notes maturing in 2034, subject to market and other conditions.
The additional notes are a reopening of the company's existing 5.875% senior notes due 2034, originally issued in May 2026, and will have the same terms aside from issuance date and offering price. They will be jointly and severally guaranteed on a senior unsecured basis by all current and future subsidiaries that guarantee borrowings under the company's credit agreement and other capital markets debt.
Encompass intends to use net proceeds, together with cash on hand, to repay outstanding amounts under its senior secured revolving credit facility. The notes are being offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S; they have not been registered under the Securities Act or state securities laws.