Encompass Health prices $500 million senior notes due 2034

Encompass Health Corp. (NYSE: EHC) announced the pricing of $500 million in senior notes due 2034 through a private offering. The notes carry a 5.875% interest rate and were priced at 100% of principal amount.

The company will pay interest semiannually on June 1 and December 1 each year, beginning December 1, 2026. The notes will be guaranteed by all existing and future subsidiaries that guarantee borrowings under the company's credit agreement and other capital markets debt. The offering is expected to close on May 29, 2026, subject to customary closing conditions.

Encompass Health plans to use the net proceeds, along with available cash, to redeem $400 million of its outstanding 4.500% Senior Notes due 2028 and repay $100 million under its senior secured revolving credit facility. The company will also pay related fees and expenses.

The notes were offered in the United States to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S. The offering has not been registered under the Securities Act of 1933.

Encompass Health operates 175 inpatient rehabilitation hospitals across 39 states and Puerto Rico, making it the largest owner and operator of such facilities in the United States.

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