Select Medical, Concentra Group Launch Offering Of $750 Mln Of Senior Notes

(RTTNews) - Select Medical Holdings Corp. (SEM) and Concentra Group Holdings Parent, Inc. announced on Tuesday that Concentra Escrow Issuer Corporation or issuer, a subsidiary of Concentra Health Services, Inc. or CHSI has launched an offering of $750 million of senior notes due 2032.

The notes are being offered in connection with Select's previously announced plan to pursue a separation of Concentra, its wholly-owned occupational health services business.

The issuer will merge with and into CHSI, with CHSI continuing as the surviving entity.

The gross proceeds of the offering will be held in escrow pending the consummation of the merger, which is currently expected to occur in the third quarter.

Concentra intends to use $50 million of the net proceeds from the offering for general corporate purposes and to pay the remainder, together with the borrowings to Select Medical Corporation as a dividend.

If the merger is not consummated on or prior to September 30, then the notes will be subject to a special mandatory redemption.