By Paul A. Harris
Portland, Ore., Sept. 30 – Encompass Health Corp. priced a $400 million issue of 10.5-year senior notes (B1/B+) at par to yield 4 5/8% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4¾% area. Initial talk was in the 4 7/8% area.
The deal was four-times oversubscribed, a trader said.
Truist Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC and Wells Fargo Securities LLC.
The Birmingham, Ala.-based provider of inpatient rehabilitative health care services plan to use the proceeds to redeem its 5¾% senior notes due 2024.
Issuer: | Encompass Health Corp.
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Amount: | $400 million
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Maturity: | April 1, 2031
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Securities: | Senior notes
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Left bookrunner: | Truist Securities Inc.
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Joint bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC and Wells Fargo Securities LLC
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Coupon: | 4 5/8%
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Price: | Par
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Yield: | 4 5/8%
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Call protection: | 5.5 years
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Trade date: | Sept. 30
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Settlement date: | Oct. 5
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Ratings: | Moody's: B1
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| S&P: B+
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Distribution: | SEC registered
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Price talk: | 4¾% area
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Marketing: | Drive-by
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