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Encompass Health Prices $500 Million Senior Notes, Moves to Redeem $400 Million of 2028 Notes

BY MT Newswires | CORPORATE | 05:28 PM EDT

05:28 PM EDT, 05/14/2026 (MT Newswires) -- Encompass Health (EHC) priced a private offering of $500 million in aggregate principal amount of 5.875% senior notes due 2034.

The notes were priced at 100% of principal, the company said Thursday in a statement.

The company will pay interest semiannually on June 1 and Dec. 1, beginning Dec. 1, 2026. The offering is expected to close on May 29, subject to customary conditions.

Encompass Health (EHC) plans to use net proceeds from the offering, along with available cash, to redeem at par $400 million of its 4.5% senior notes due 2028, to repay $100 million outstanding under its senior secured revolving credit facility, and to pay related fees and expenses.

Separately, Encompass Health (EHC) issued a notice of redemption for $400 million of the 2028 notes at 100% of par plus accrued interest to the June 13 redemption date, payable June 15. The aggregate principal amount of the 2028 notes outstanding was $800 million as of Thursday.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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