On September 30, 2009, HealthSouth Corporation (“HealthSouth” or the “Company”) issued 8,151,265 warrants in satisfaction of its obligation to do so under the comprehensive settlement of the 2003 consolidated class action captioned In re HealthSouth Corp. Securities Litigation, Master Consolidation File No. CV-03-BE-1500-S brought by the Company’s stockholders and bondholders. Under the terms of the related warrant agreement, dated as of September 30, 2009, among the Company and Computershare Inc. and Computershare Trust Company, N.A., jointly and severally as warrant agent, the warrants were exercisable at a price of $41.40 per share by means of a cash or a cashless exercise at the option of the holder. The warrants expired at 5 p.m., New York City time, on January 17, 2017.

In total, holders exercised 7,119,824 warrants resulting in the issuance of 699,345 shares of the Company’s common stock, par value $.01 per share (“Common Stock”), and 1,031,441 warrants expired without being exercised. Specifically, holders exercised (i) 644,375 warrants by means of cash exercise resulting in the issuance of 644,375 shares of Common Stock and cash proceeds to the Company of $26.7 million and (ii) 6,475,449 warrants by means of a cashless exercise resulting in the issuance of 54,970 shares of Common Stock. Substantially all of the exercises occurred in January 2017.

Of note, in the fourth quarter of 2016, the Company repurchased 1,054,754 shares of Common Stock in the open market for $41.5 million.

About HealthSouth Corporation (NYSE:HLS)

HealthSouth Corporation (HealthSouth) is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in over 30 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company’s segments include inpatient rehabilitation, and home health and hospice. The Company is an owner and operator of inpatient rehabilitation hospitals and provides specialized rehabilitative treatment on both an inpatient and outpatient basis. It provides specialized rehabilitative treatment on both an inpatient and outpatient basis. In addition to hospitals, the Company manages over three inpatient rehabilitation units through management contracts. The Company offers its home health and hospice services through Encompass Home Health and Hospice business (Encompass). Encompass is a provider of Medicare-certified skilled home health services.

HealthSouth Corporation (NYSE:HLS) Recent Trading Information

HealthSouth Corporation (NYSE:HLS) closed its last trading session 00.00 at 39.95 with 887,830 shares trading hands.