Encompass Health Corp Issues $500 Million Senior Notes due 2034

By Philip Seaworth • Friday, May 15 16:07 • Permanent Link

Encompass Health priced a $500 million senior notes offering due 2034 at 100% of principal, with a 5.875% coupon. The company said the notes will pay interest semiannually beginning Dec. 1, 2026, and the offering is expected to close May 29, 2026.

The new debt will be used alongside cash on hand to retire $400 million of 4.500% senior notes due 2028 at par and to repay $100 million outstanding on its senior secured revolving credit facility. That means the company is replacing a portion of shorter-dated debt with longer-dated debt while also trimming revolver borrowings by the same amount.

The notes are being issued in a private placement and will be guaranteed by subsidiaries that already back the company’s credit agreement and other capital markets debt. As a result of these announcements, the company's shares have moved -0.38% on the market, and are now trading at a price of $106.89. Check out the company's full 8-K submission here.

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