Select Medical Holdings Corporation Enters Purchase Agreement for $550 Million Senior Notes; Announces Pricing Details

Select Medical Holdings Corporation recently disclosed in an 8-K filing with the Securities and Exchange Commission that its subsidiary, Select Medical Corporation, has entered into a significant Purchase Agreement. The agreement, dated November 18, 2024, involves the initial purchasers identified therein and the Guarantors, outlining the offer and sale of $550.0 million aggregate principal amount of the Company’s 6.250% Senior Notes due 2032.

The Purchase Agreement includes essential details such as the terms and conditions of the offer and sale of the Notes, as well as indemnification, contribution obligations, and other customary provisions found in such agreements. For complete information, interested parties are referred to the Purchase Agreement, which is filed as Exhibit 1.1 to the Current Report on Form 8-K.

In conjunction with this transaction, Select Medical Holdings Corporation issued a press release on November 18, 2024, disclosing the pricing of its previously announced offering of the Notes. The Company has priced the private offering of $550.0 million in aggregate principal amount of its 6.250% senior notes due 2032. The closing of this Offering is anticipated to take place on December 3, 2024, subject to fulfilling customary closing conditions. The notes will be senior unsecured obligations of Select and will be guaranteed by certain existing and future domestic subsidiaries of Select.

The Company has outlined plans to utilize the net proceeds from this Offering, in addition to funds from a proposed new incremental term loan and cash on hand, to fully repay the term loans outstanding under Select’s existing senior secured credit agreement. Furthermore, the funds will be used to redeem all of Select’s outstanding 6.250% senior notes due 2026 and cover related fees and expenses.

It is important to note that the notes and related guarantees have not been, nor will they be, registered under the Securities Act of 1933 or the securities laws of any other jurisdiction. Consequently, the offering and sale of the notes are solely intended for qualified institutional buyers under Rule 144A of the Securities Act and certain non “U.S. persons” in compliance with Regulation S under the Act.

This Press Release does not constitute an offer to sell or a solicitation of an offer to buy these notes in any jurisdiction where such an offer, solicitation, or sale would be illegal. Any offers related to these notes will be made exclusively through a private offering memorandum. The announcement follows the guidelines under Rule 135c of the Securities Act and should not be interpreted as a notice of redemption regarding the 6.250% senior notes due 2026.

Disclaimer: The contents of this document contain forward-looking statements. These statements are based on current beliefs, expectations, and assumptions, but may involve risks and uncertainties beyond the Company’s control. Interested parties are advised to reference Holdings’ filings with the U.S. Securities and Exchange Commission for more information and to consider the cautions regarding forward-looking statements before making any financial decisions.

Investor inquiries can be directed to Joel T. Veit, Senior Vice President, and Treasurer of Select Medical Holdings Corporation.

Source: Select Medical Holdings Corporation.

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.

About Select Medical

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.