Encompass Health issues notice for redemption of $100 million of its 5.125% senior notes due 2023

Rhea-AI Summary

Encompass Health Corporation (NYSE: EHC) announced the redemption of $100 million in 5.125% senior notes due 2023, scheduled for June 30, 2021. The company will fund this redemption using cash on hand and its revolving credit facility. This move is expected to result in a $0.5 million loss on early extinguishment of debt in Q2 2021. Encompass Health, a leader in integrated healthcare services, operates across 139 hospitals and various home health and hospice locations.

Positive

• Redemption of $100 million in senior notes can strengthen the company's balance sheet.
• Utilizing cash on hand and revolving credit facility indicates strong liquidity management.

Negative

• $0.5 million loss on early extinguishment of debt projected for Q2 2021.

BIRMINGHAM, Ala., May 28, 2021 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC) today issued notice for redemption of $100 million of the outstanding principal balance of its 5.125% senior notes due 2023 (the "2023 Notes"). The associated redemption date will be June 30, 2021, and the redemption price will be 100.0% of par, plus accrued and unpaid interest, pursuant to the terms of the 2023 Notes. The Company plans to use cash on hand and drawings under its revolving credit facility to fund the redemption. As a result of this redemption, the Company expects to record an approximate $0.5 million loss on early extinguishment of debt in the second quarter of 2021.

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 139 hospitals, 241 home health locations, and 82 hospice locations in 39 states and Puerto Rico, the Company provides high–quality, cost-effective integrated healthcare. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

Forward-Looking Statements
Statements contained in this press release which are not historical facts 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, potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health'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; 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, 2020 and Form 10-Q for the quarter ended March 31, 2021.

Media Contact:
Casey Winger | 205.970.5912
casey.lassiter@encompasshealth.com   

Investor Relations Contact:
Crissy Carlisle | 205.970.5860
crissy.carlisle@encompasshealth.com   

 

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SOURCE Encompass Health Corp.

FAQ

What is the redemption amount for Encompass Health's senior notes?

Encompass Health is redeeming $100 million of its senior notes.

When is the redemption date for the 5.125% senior notes?

The redemption date is set for June 30, 2021.

How will Encompass Health fund the redemption of its senior notes?

The redemption will be funded using cash on hand and drawings from its revolving credit facility.

What is the expected loss on the early extinguishment of debt?

Encompass Health anticipates a $0.5 million loss on early extinguishment of debt.

What type of healthcare services does Encompass Health provide?

Encompass Health provides integrated healthcare services through hospitals, home health agencies, and hospice agencies.