EHC · Encompass Health Corporation

Encompass Health Corporation announced a material financing transaction through a private placement of $500 million in 5.875% senior notes due 2034, entered via a Purchase Agreement with Wells Fargo Securities, LLC on May 14, 2026. This extends the company's debt maturity profile by replacing $400 million of higher-cost 4.500% notes due 2028 (redeemed at par) and reducing revolver borrowings by $100 million, improving liquidity and near-term obligations. The notes carry guarantees from subsidiaries that back the company's credit agreement and other debt, maintaining senior unsecured status. Closing is targeted for May 29, 2026, contingent on standard conditions, with semiannual interest payments starting December 1, 2026. The unregistered offering targets qualified institutional buyers under Rule 144A and offshore investors under Regulation S, avoiding public registration. Initial Purchasers and affiliates have ongoing banking relationships with the company, including under its revolver. This refinancing supports balance sheet management amid the company's operations as the largest U.S. inpatient rehabilitation hospital operator, though forward-looking completion risks are noted in the press release.