HealthSouth calls 2% convertible senior subordinated notes due 2043

New York, May 26 – HealthSouth Corp. will redeem its $320 million of 2% convertible senior subordinated notes due 2043 on June 26.

The company will pay par plus accrued interest up to but excluding the redemption date, according to a news release.

Holders may convert the notes until 5 p.m. ET on June 23 at a rate of 27.2221 shares per $1,000 principal amount plus a make-whole premium.

Based on current market conditions, the make-whole premium would add approximately 200,000 shares to the number to be issued, assuming all the notes are converted.

The company’s stock closed at $46.35 per share on Thursday.

Conversions will be settled in stock.

Funding for the redemption will come from available cash and borrowings from the company’s revolving credit facility.

HealthSouth is a Birmingham, Ala., provider of post-acute health care services through inpatient rehabilitation hospitals, home health agencies and hospice agencies.

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