HealthSouth Corporation (NYSE:HLS) Files An 8-K Unregistered Sales of Equity Securities
Item 3.02. Unregistered Sales of Equity Securities.
Securities and Exchange Commission (the SEC) on November 19, 2013
(the November 19 Form 8-K), HealthSouth Corporation (the Company)
previously issued $320.0 million in aggregate principal amount of
2.00% Convertible Senior Subordinated Notes due 2043 (the
Convertible Notes) to holders of, and in exchange for, 257,110
shares of the Companys 6.50% Series A Convertible Perpetual
Preferred Stock, par value $0.10 per share and liquidation
preference $1,000 per share. The Convertible Notes are governed
by the Indenture (the Indenture), dated November 18, 2013, by and
between the Company and Wells Fargo Bank, National Association,
as trustee, paying agent, conversion agent and registrar.
redemption of all of the outstanding principal amount of the
Convertible Notes on June 26, 2017 (the Redemption Date). to the
Indenture, the holders of the Convertible Notes had the right to
elect to convert those notes to shares of the Companys common
stock, par value $.01 per share (the Common Stock), before the
close of business on June 23, 2017.
Stock in connection with conversion elections delivered by
noteholders to the Company in the Current Reports on Form 8-K
filed with the SEC on June 12, 2017 and June 20, 2017 (the June
20 Form 8-K). Since the filing of the June 20 Form 8-K, the
Company has received conversion elections that have resulted, or
are expected to result, in the following issuances of shares of
Common Stock:
Issuance Date
|
Shares Issued
|
Principal Converted
|
|||||
June 23, 2017
|
549,253
|
$
|
19,731,000
|
||||
June 26, 2017
|
1,402,667
|
50,394,000
|
|||||
June 27, 2017
|
884,706
|
31,786,000
|
|||||
June 28, 2017
|
268,999
|
9,665,000
|
|||||
3,105,625
|
$
|
111,576,000
|
$614,000 of remaining aggregate principal amount of Convertible
Notes. In the aggregate, holders of $319.4 million in principal
amount of Convertible Notes elected to convert, which resulted or
will result in the Company issuing 8,895,483 shares of Common
Stock.
conversions have been issued in reliance on the exemption from
registration provided by Section 4(a)(2) of the Securities Act of
1933, as amended (the Securities Act).
sell or a solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities law of any such state or jurisdiction. The Convertible
Notes and the shares of Common Stock issuable upon the conversion
of the Convertible Notes have not been and will not be registered
under the Securities Act or the securities laws of any other
jurisdiction and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.
Indenture do not purport to be complete and are qualified in
their entirety by reference to the Indenture. A copy of the
Indenture, including the form of Global Note for the Convertible
Notes, was attached as Exhibit 4.1 to the November 19 Form 8-K.
are not historical facts, such as the expected conversion
settlement dates are forward-looking statements. In addition, the
Company, through its senior management, may from time to time
make forward-looking public statements concerning the matters
described herein. All such estimates, projections, and
forward-looking information speak only as of the date hereof, and
the Company undertakes no duty to publicly update or revise such
forward-looking information, whether as a result of new
information, future events, or otherwise. Such forward-looking
statements are necessarily estimates based upon current
information and involve a number of risks and uncertainties.
Actual events or results may differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors. While it is impossible to identify all such
factors, factors which could cause actual events or results to
differ materially from those estimated by the Company include,
but are not limited to, the price of the Companys common stock as
it affects the tax and accounting impacts resulting from
conversions of the Notes; potential disruptions,
availability, or security of the Companys information systems,
including unauthorized access to or theft of patient, business
associate, or other sensitive information; general conditions or
significant disruptions in the economy and capital markets; and
other factors which may be identified from time to time in the
Companys SEC filings and other public announcements, including
its Form 10K for the year ended December 31, 2016 and Form 10-Q
for the quarter ended March 31, 2017.
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.