Encompass Health Taps Debt Markets Again with $100M Add-On Note Offering
EHC sits 35% above its 52-week low of $92.77.
Summary
Encompass Health is reopening its 5.875% senior notes due 2034 to raise an additional $100 million, bringing the total to $600 million. The company plans to use the proceeds, along with cash on hand, to pay down its revolving credit facility. This follows the initial $500 million offering in May, which was used to refinance debt. The add-on comes just days after strong Q2 results and a raised full-year outlook, suggesting the company is opportunistically bolstering liquidity while market conditions are favorable. The offering is modest relative to the company's $12.4 billion market cap and should not be significantly dilutive to equity holders.
At the time of this announcement, EHC was trading at $125.23 on NYSE in the Life Sciences sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $92.77 to $127.99. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: PR Newswire.