Encompass Health Corp (EHC): debt financing — Encompass Health enters $1B revolver with Truist; matures 2031, replaces 2022 facility

Encompass Health Corp

New $1.0B revolving credit facility with Truist Bank as administrative agent; maturity extended to March 9, 2031 (from Oct 2027).
Undrawn commitment fee reduced by 5 bps; swingline sublimit increased to $40M (from $25M); 0.10% SOFR adjustment eliminated.
Drew $250M to repay prior credit agreement; also drew $53.6M on new letter of credit subfacility.
Financial covenants: minimum Interest Coverage Ratio 3.00x; maximum Leverage Ratio 4.50x (net of cash), except for significant acquisitions.
Accordion permits up to $1.4B or 100% EBITDA additional commitments, subject to Senior Secured Leverage Ratio ≤ 3.50x.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Encompass Health Corp incurred revolving credit of $1 billion with Truist Bank at SOFR plus 3.00% maturing March 9, 2031.

Instrument: revolving credit
Principal: $1 billion
Counterparty: Truist Bank
Rate: SOFR plus 3.00%
Maturity: March 9, 2031
Event: incurrence

Exact text from the filing

On March 9, 2026 (the “Closing Date”), Encompass Health Corporation (the “Company”) entered into the Credit Agreement (the “2026 Credit Agreement”), by and among the Company, certain of its subsidiaries, as guarantors, Truist Bank, as administrative agent and collateral agent, and various other lenders.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.7

Encompass Health Corp entered into 2026 Collateral and Guarantee Agreement with Truist Bank, as collateral agent (effective 2026-03-09).

Action: entry
Counterparty: Truist Bank, as collateral agent
Effective: 2026-03-09

Exact text from the filing

Additionally, the Company terminated its existing collateral and guarantee agreement with Barclays and entered into the Collateral and Guarantee Agreement (the “2026 Collateral and Guarantee Agreement”), by and among the Company, certain of its subsidiaries, and Truist Bank, as collateral agent, which provides for similar terms in all material respects.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Encompass Health Corp entered into 2026 Credit Agreement with Truist Bank, as administrative agent and collateral agent, and various other lenders valued at $1 billion (effective 2026-03-09).

Action: entry
Agreement: credit facility
Counterparty: Truist Bank, as administrative agent and collateral agent, and various other lenders
Value: $1 billion
Effective: 2026-03-09

Exact text from the filing

On March 9, 2026 (the “Closing Date”), Encompass Health Corporation (the “Company”) entered into the Credit Agreement (the “2026 Credit Agreement”), by and among the Company, certain of its subsidiaries, as guarantors, Truist Bank, as administrative agent and collateral agent, and various other lenders.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Encompass Health Corp terminated 2022 Credit Agreement with Barclays Bank PLC, as administrative agent and collateral agent, and various other lenders (effective 2026-03-09).

Action: termination
Agreement: credit facility
Counterparty: Barclays Bank PLC, as administrative agent and collateral agent, and various other lenders
Effective: 2026-03-09

Exact text from the filing

As disclosed in Item 1.01 of this Current Report on Form 8-K, on March 9, 2026, the Company terminated the 2022 Credit Agreement and the Second Amended and Restated Collateral and Guarantee Agreement, dated November 25, 2019, by and among the Company, certain of its subsidiaries, and Barclays, as collateral agent.

View on SEC.gov

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Encompass Health Corp filing history →

Source: SEC EDGAR

accession 0000785161-26-000100

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