Select Medical Holdings Corporation and Concentra Group Holdings Parent, Inc. have announced the pricing of an offering of $650 million of 6.875% senior notes due 2032 by Concentra Escrow Issuer Corporation. The notes are being offered in connection with Select’s previously announced plan to pursue a separation of Concentra, its wholly-owned occupational health services business.
Concentra intends to use $50 million of the net proceeds from the offering for general corporate purposes and to pay the remainder, together with the borrowings under its proposed new senior secured credit facility, to Select Medical Corporation as a dividend.
The gross proceeds of the offering will be held in escrow pending the consummation of the merger, which is expected to occur in the third quarter of 2024, with no assurance that such consummation will not be delayed or that it will occur at all.
The notes and related guarantees are being offered in a private placement, solely to qualified institutional buyers or persons outside the United States in compliance with Regulation S under the Securities Act of 1933. The notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption.
This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $34.84. For more information, read the company's full 8-K submission here.
