Encompass Health Corp. upsized and priced a previously announced offering of its senior notes by $200 million to $1 billion.
The 4.5% senior notes due 2028 and the 4.75% senior notes due 2030 will each have a principal amount of $500 million, according to the company's Sept. 9 release. Encompass will pay interest on both series semiannually Feb. 1 and Aug. 1 each year, starting Feb. 1, 2020.
The Birmingham, Ala.-based healthcare equipment company, which provides home-based and facility-based services, plans to use part of the net proceeds from the debt offering to fund the purchase of equity from management investors of its home health and hospice segment.
Remaining proceeds from the offering will be used to fund a call of $400 million of its senior notes due 2024 and to repay borrowings under its revolving credit facility.
Citigroup, Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, RBC Capital Markets, Regions Securities LLC, SunTrust Robinson Humphrey and Wells Fargo Securities are joint book-running managers for the offering.
