Encompass Health prices $100 million in additional senior notes
Birmingham-based Encompass Health Corp. has priced a private offering of $100 million in additional 5.875% senior notes due 2034. The company set the price at 98.75% of the principal amount, reopening a series originally issued in May 2026 to consolidate its debt obligations and manage its revolving credit facility.
The new notes function as a reopening of the existing 5.875% notes maturing in 2034, sharing identical terms regarding interest payments, which are scheduled semiannually on June 1 and December 1. These securities are guaranteed on a senior unsecured basis by the same subsidiaries that back the company's broader credit agreements. Completion of the offering is slated for August 13, 2026, contingent on standard market conditions.
Management intends to allocate the net proceeds, supplemented by existing cash reserves, toward repaying outstanding balances on its senior secured revolving credit facility. The offering is restricted to qualified institutional buyers under Rule 144A and specific non-U.S. investors under Regulation S, ensuring the notes remain exempt from immediate registration requirements under the Securities Act of 1933.
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