#United States #Senior Notes #Birmingham #Encompass Health #Private Offering

Encompass Health Launches a New Private Offering of Senior Notes

Encompass Health Corp. (NYSE: EHC), a leader in the rehabilitation industry, recently announced the initiation of a private offering for an additional $100 million in 5.875% senior notes due in 2034. This move is designed to strengthen the company's financial standing while supporting its operational needs.

Details of the Offering

The offering is a reopening of the existing senior notes that were originally issued earlier this year in May. These newly offered notes will be treated as part of the same class as the existing notes, maintaining identical terms with the exception of the issuance date and offering price. Furthermore, all current and future subsidiaries of Encompass Health that guarantee borrowings under the company’s credit agreement will back the notes on a senior unsecured basis. This added security reinforces the trust and confidence investors can place in this offering.

Usage of Proceeds

The proceeds from this offering are earmarked primarily for the repayment of outstanding amounts under the company’s senior secured revolving credit facility. The strategic allocation of these funds not only enhances the financial agility of Encompass Health but also positions the company to manage its obligations efficiently. By utilizing both the offering proceeds and existing cash reserves, the company aims to fortify its financial foundation.

Who Can Participate?

This private offering is limited to individuals and entities that qualify as institutional buyers as per Rule 144A of the Securities Act of 1933. Certain non-U.S. entities will also be able to participate in transactions outside the United States in compliance with Regulation S under the same act. It’s important to note that these offerings and their corresponding guarantees have not been and will not be registered under the Securities Act or any state securities laws, creating restrictions on their availability to the general public.

Encompass Health’s Market Position

Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals across the United States, with a network of 176 hospitals in 39 states and Puerto Rico. The company is renowned for providing compassionate and high-quality rehabilitative care for patients recovering from major injuries or illnesses. Their approach leverages advanced technology and innovative therapeutic methods to optimize patient recovery outcomes. Encompass Health's commitment to excellence has earned it accolades, such as being ranked among Fortune’s World’s Most Admired Companies and recognized as America’s Most Awarded Leader in Inpatient Rehabilitation.

Conclusion

By launching this additional offering of senior notes, Encompass Health is not just managing its financial liabilities but is also reflecting its ongoing growth strategy in the rehabilitation sector. This initiative underscores the company’s commitment to providing the best healthcare solutions, all while maintaining a solid financial strategy that supports its operational excellence and service delivery.

Further details about the offering, including participation conditions, remain available via the Encompass Health investor relations channels and should be consulted by interested investors wishing to gauge the opportunity presented by this offering.