Select Medical (SEM) slipped almost 3% in recent trading Monday after the rehabilitation centers chain disclosed plans for an $850 million private placement of senior notes maturing in 2032.
The company is expecting to use net proceeds from the offering, together with borrowings through a new incremental term loan and available cash, to fully repay its existing term loan facility and redeeming all of its outstanding 6.250% senior notes due 2026.
Select Medical plans to amend its existing senior credit agreement to establish a new incremental loan that will refinance and extend certain credit facilities, and provide for additional commitments.
Price: 36.43, Change: -1.02, Percent Change: -2.72
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