Encompass Health Corporation filed a Form 8-K with the SEC on August 13, 2026, disclosing the completion of a $100 million add-on offering of its 5.875% Senior Notes due 2034 and the use of proceeds to repay a portion of its revolving credit facility.

Key Highlights

  • Offering size: $100 million in aggregate principal amount of 5.875% Senior Notes due 2034 were issued and sold on August 13, 2026.
  • Purchase price: The Additional Notes were priced at 98.75% of aggregate principal amount.
  • Net proceeds: Approximately $96.9 million after deducting initial purchasers' discount and estimated offering expenses, according to the filing.
  • Use of proceeds: Net proceeds, together with cash on hand, were used to repay a portion of outstanding amounts under the company's revolving credit facility.
  • Existing notes total: The Existing Notes, issued on May 29, 2026, had an aggregate principal amount of $500,000,000; the Additional Notes and Existing Notes are treated as a single class under the Indenture.
  • Offering exemption: The transaction was exempt from Securities Act registration requirements and will be resold under Rule 144A and Regulation S.

Encompass Health Completes Add-On Note Issuance to Reduce Revolving Credit Borrowings

According to the Form 8-K filed by Encompass Health Corporation (NYSE:EHC) on August 13, 2026, the company completed a private offering of $100 million in aggregate principal amount of its 5.875% Senior Notes due 2034. The Additional Notes were sold to initial purchasers at a purchase price of 98.75% of their principal amount. After deducting the initial purchasers' discount and estimated offering expenses, the company reported net proceeds of approximately $96.9 million.

The filing disclosed that the company applied those net proceeds, combined with cash on hand, to repay a portion of the outstanding balance on its revolving credit facility. The Additional Notes are governed by the Indenture dated May 29, 2026, executed among the company, certain subsidiary guarantors, and Computershare Trust Company, National Association, as trustee. The filing stated that, other than the date of issuance and public offering price, the Additional Notes carry identical terms to the Existing Notes, which were issued on May 29, 2026, in an aggregate principal amount of $500,000,000.

The filing further stated that the Additional Notes and the Existing Notes "are treated as a single class for all purposes under the Indenture, including notices, consents, waivers, amendments, redemptions and any other action permitted under the Indenture, and rank pari passu with the Existing Notes." The offering was made in a transaction exempt from Securities Act registration, with resale to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. The filing was signed by Patrick Darby, Executive Vice President, General Counsel and Corporate Secretary.

What Was Disclosed

Encompass Health disclosed the August 13, 2026 completion of a $100 million add-on issuance of 5.875% Senior Notes due 2034 at 98.75% of par, generating approximately $96.9 million in net proceeds used to pay down revolving credit facility borrowings.