Embody Well being on Wednesday introduced the issuance of $400 million in senior notes that may mature in 2031.
The Birmingham, Ala.-based post-acute care supplier mentioned it would use the cash from the providing, in addition to $300 million in money, to repay at face worth $700 million in 5.75% coupon senior notes due in 2024.
Moody’s Vice President and Senior Credit score Officer Jonathan Kanarek mentioned the refinancing is a “credit score constructive” transfer, noting that decreasing debt and lengthening the maturity of the corporate’s debt would offset losses in liquidity.
Regardless of decreases in quantity in each facility-based and home-based care and a loss in income reported for the second quarter of 2020 as a result of coronavirus pandemic, Embody has been increasing considerably within the second half of the yr.
Since July 1, the corporate has introduced a three way partnership to personal and function two inpatient rehabilitation hospitals in Knoxville, Tenn., in addition to plans to open six inpatient rehabilitation hospitals in Florida.
Linda Wilder, president of Embody Well being’s southeast area, attributed the enlargement in Florida to elevated demand created by the expansion of the area.
Embody Well being President and CEO Mark Tarr mentioned in late July that affected person volumes throughout the board are rebounding.
“We consider we now have carried out plans throughout our group to handle the numerous ongoing challenges introduced by the COVID-19 pandemic. We stay assured within the intermediate and long-term progress prospects for our Firm primarily based on the growing demand for the providers we offer to an growing older inhabitants,” Tarr mentioned.
Embody Well being offers facility-based and home-based care at 136 hospitals, 245 residence well being places, and 83 hospice places in 39 states and Puerto Rico.