Encompass Health Corp 8-K

What Happened

• Encompass Health Corporation announced on May 29, 2026 that it completed a private offering of $500 million aggregate principal amount of 5.875% Senior Notes due June 1, 2034, issued under an indenture with Computershare Trust Company as trustee. The Notes were issued at par, producing approximately $491.2 million in net proceeds after initial purchasers’ discount and offering expenses.

Key Details

• Amount & coupon: $500.0 million principal; 5.875% interest, payable semiannually on June 1 and December 1, beginning December 1, 2026.
• Use of proceeds: Company intends to redeem $400.0 million of its 4.500% senior notes due 2028 at par, repay $100.0 million under its revolving credit facility, and pay related fees and expenses.
• Offering structure: Private sale to initial purchasers; resale to qualified institutional buyers under Rule 144A and to non‑U.S. persons under Regulation S.
• Terms & protections: Notes are senior unsecured, guaranteed by subsidiaries that guarantee the company’s revolver or other capital markets debt; callable (with make‑whole provisions before June 1, 2029), change‑of‑control repurchase right at 101% of principal, and customary events of default (including cross‑default threshold of $100M).

Why It Matters

• This transaction extends Encompass Health’s funded debt maturity profile to 2034 and uses proceeds to reduce near‑term maturity and revolving facility balances. For investors, key takeaways are the new interest cost (5.875%), the $400M 2028 note redemption and $100M revolver paydown, and the senior unsecured ranking with subsidiary guarantees. The full indenture and note form are filed as exhibits to the 8‑K for more detail.