Select Medical Holdings Corporation Announces $850 Million Senior Notes Offering

Select Medical Holdings Corporation, a Delaware-based healthcare company, announced on November 18, 2024, the commencement of an offering of $850 million in aggregate principal amount of senior notes due 2032 by its wholly owned subsidiary, Select Medical Corporation. The senior notes will be issued by the Company and will be unconditionally guaranteed by certain subsidiaries of the Company.

The purpose of this offering is to utilize the net proceeds, along with funds from a new incremental term loan and existing cash reserves, to fully repay the term loan currently outstanding under the Company’s existing credit agreement and redeem all of its outstanding 6.250% senior notes due 2026. In tandem with the repayment, the Company plans to amend its existing senior secured credit facilities, including establishing a new incremental term loan, extending the tenor of its revolving credit facility, providing for an incremental revolving commitment, and making additional adjustments to the credit agreement.

It is important to note that the final terms of the amendments to the senior secured credit facilities are under discussion, and variations from the preliminary descriptions may occur. The senior notes are set to be offered through a private placement and resold by initial purchasers to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and Regulation S. These notes will not be registered under the Securities Act and cannot be marketed or sold in the United States without the appropriate registrations or exemptions.

Regarding forward-looking statements, the Company highlighted the associated risks, uncertainties, and factors that may lead to material differences between the expected and actual outcomes mentioned in the Form 8-K filing. The Company advised that potential completion of the note offering, terms of repayment, market conditions, regulatory approvals, and various other conditions could affect the final outcome.

Select Medical Corporation’s press release stated that concurrent with the senior notes Offering, the Company aims to adjust its existing senior secured credit agreement to optimize financing structures and provide for additional financial commitments. The press release detailed that the notes and related guarantees are not registered under the Securities Act and emphasized that any offer of the notes will be conducted through a private offering memorandum in compliance with applicable regulations.

The Form 8-K submission concluded by attaching selected portions of information from an offering memorandum that the Company intends to provide to investors. It stressed that this information is being furnished in accordance with regulatory requirements and is not considered filed material under the Securities Exchange Act of 1934 or for incorporation by reference in subsequent filings.

For further details, the press release issued by Select Medical Holdings Corporation is available on their website or through investor inquiries at [email protected] or by contacting Senior Vice President and Treasurer, Joel T. Veit at 717-972-1100.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Select Medical’s 8K filing here.

Select Medical Company Profile

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra.