Company: EHC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000785161-25-000009
Chunk: 57

Company: Encompass Health Corp
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 57
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2026101.583 %2027100.792 %2028 and thereafter100.000 %* Expressed in percentage of principal amount

F-32

Encompass Health Corporation and SubsidiariesNotes to Consolidated Financial Statements

2031 NotesIn October 2020, we issued $400 million of the 2031 Notes at par. The 2031 Notes mature on April 1, 2031 and bear interest at a per annum rate of 4.625%. Inclusive of financing costs, the effective interest rate on the 2031 Notes is 5.0%. Interest is payable semiannually in arrears on April 1 and October 1 of each year. We may redeem the 2031 Notes, in whole or in part, at any time on or after April 1, 2026 at the redemption prices set forth below:PeriodRedemptionPrice*2026102.313 %2027101.542 %2028100.771 %2029 and thereafter100.000 %* Expressed in percentage of principal amountFormer 2023 NotesIn March 2022, we redeemed the remaining $100 million in outstanding principal amount of the 5.125% Senior Notes due 2023 (the “Former 2023 Notes) using capacity under our revolving credit facility. Pursuant to the terms of the Former 2023 Notes, this optional redemption was made at a price of par. The Former 2023 Notes would have matured on March 15, 2023. Inclusive of financing costs, the effective interest rate on the Former 2023 Notes was 5.4%. Interest on the Former 2023 Notes was payable semiannually in arrears on March 15 and September 15.Other Notes Payable—Our notes payable consist of the following (in millions):As of December 31,20242023Current Interest RatesSale/leaseback transactions involving real estate accounted for as financings$28.0 $28.0 9.2% to 13.4%Construction of new hospitals47.6 38.0 5.0% to 6.3%Software contracts18.9 — 5.5% to 6.5%Other notes payable$94.5 $66.0 

10.Self-Insured Risks:

We insure a substantial portion of our professional liability, general liability, and workers’ compensation