Encompass Health issues notice for full redemption of remaining $700 million of its 5.75% senior notes due 2024
Encompass Health Corporation (NYSE: EHC) announced the redemption of $700 million in 5.75% senior notes due 2024, set to settle on November 1, 2020, at par value. The redemption will be funded using proceeds from a recent $400 million public offering of senior unsecured notes due 2031 and available cash. This strategic move aims to optimize the company's capital structure and financial strategy amidst ongoing market challenges.
- Redemption of $700 million senior notes signals a proactive approach to debt management.
- Funding redemption through a $400 million senior unsecured notes offering demonstrates strong capital raising ability.
- The company is exposed to market risks and uncertainties affecting its financial condition due to the COVID-19 pandemic.
- Potential legal challenges and regulatory compliance costs may impact financial performance.
BIRMINGHAM, Ala., Oct. 5, 2020 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC) issued notice for redemption of all
About Encompass Health
As a national leader in integrated healthcare services, Encompass Health (NYSE: EHC) offers both facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that includes 136 hospitals, 245 home health locations, and 83 hospice locations in 39 states and Puerto Rico, the Company is committed to delivering high-quality, cost-effective, integrated care across the healthcare continuum. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For.
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the completion of this redemption and the closing of the offering of the 2031 Notes, are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, Encompass Health's ability to complete the redemption as described or at all; the impact of the COVID-19 pandemic on Encompass Health's operations, business, and financial condition, as well as its potential negative impact on Encompass Health's liquidity, particularly if the operations of acute-care hospitals and physician practices remain disrupted for a significant amount of time; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered issues, if any, at acquired companies; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or a vendor's or partner's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets, including any disruption, instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase to the debt ceiling, an international trade war or sovereign debt crisis, or a widespread outbreak of a contagious disease; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2019 and Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.
Media Contact:
Hillary Carnel | 205 970-5912
hillary.carnel@encompasshealth.com
Investor Relations Contact:
Crissy Carlisle | 205 970-5860
crissy.carlisle@encompasshealth.com
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SOURCE Encompass Health Corp.
FAQ
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