Select Medical Holdings Corporation Prices Senior Notes Offering

Select Medical Holdings Corporation Announces Pricing of Senior Notes

Select Medical Holdings Corporation (NYSE: SEM) has recently made headlines by pricing a significant private offering. The company announced it has set the price for its offering of $550 million in aggregate principal amount of 6.250% senior notes due 2032. This decision marks an important milestone for Select Medical and reflects its commitment to enhancing its financial framework.

Details of the Notes Offering

The 6.250% senior notes are crucial as they represent unsecured obligations from Select Medical Corporation, a wholly-owned subsidiary of Holdings. The private offering is anticipated to conclude on a specified date, ensuring that all customary conditions are satisfactorily met before finalization. Furthermore, it is essential to note that the notes are not registered under the Securities Act of 1933. Therefore, the offerings are restricted to qualified institutional buyers and certain non-U.S. persons outside the United States, complying with relevant regulations.

Financial Strategy Behind the Offering

With the proceeds from this offering, Select Medical plans to undertake several important financial initiatives. The primary objective is to use these funds to fully repay existing term loans that are currently outstanding under an existing credit agreement. Additionally, plans are in place to redeem all outstanding 6.250% senior notes due in 2026. This strategic decision is expected to streamline Select's debt obligations and enhance its financial stability.

Amendments to Credit Agreements

In conjunction with the successful closing of the notes offering, Select Medical intends to amend its existing senior secured credit agreements. The amendments aim to establish a new incremental term loan that will effectively refinance existing loans, extend the maturity date of the revolving credit facility, and facilitate additional revolving commitments as needed.

Importance of the Notes for Select Medical

This offering is not just a financial maneuver; it's a strategic play that positions Select Medical to manage its debts more effectively while focusing on future growth opportunities. Such financial actions can lead to enhanced operational capabilities and the potential for further investment in healthcare services.

Forward-Looking Statements

It is relevant for stakeholders to understand that while the plans are strategically ambitious, they involve inherent risks and uncertainties. Forward-looking statements commonly utilize terms related to expectations and intentions, and investors should be informed that these plans may evolve based on varying market conditions. Select Medical emphasizes the importance of being aware of factors that could influence the actual outcomes of these financial strategies.

Investor Relations and Inquiries

In light of these developments, Select Medical encourages investors and interested parties to reach out for further inquiries. Joel T. Veit can be contacted at the specified number, underscoring the company’s openness to engaging with its investors regarding this notable offering.

Frequently Asked Questions

What is the purpose of the 6.250% senior notes offering?

The offering aims to refinance existing loans, repay outstanding debts, and enhance Select Medical's overall financial structure.

When is the expected closing date for the offering?

The offering is expected to close upon the satisfaction of customary conditions, indicating careful management of the process.

Who can participate in this private offering?

The offering is available only to qualified institutional buyers and certain non-U.S. persons in compliance with applicable regulations.

How does this offering affect Select Medical's financial strategy?

This offering is a pivotal element of Select Medical's financial strategy, allowing for debt repayment and improved cash flow management.

Where can I find more information about Investor Relations?

For inquiries, investors can contact Joel T. Veit, who is available for questions regarding the offering and investor matters.

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