BIRMINGHAM, Ala., June 27 HealthSouthCorporation (the "Company") (NYSE: HLS) today announced it has finalized theissuance and sale of 8.8 million shares of common stock of the Company to J.P.Morgan Securities Inc. for net proceeds of approximately $150 million. TheCompany will use the net proceeds of the offering primarily for redemption andrepayment of short-term or long-term borrowings. Amounts not used to reducedebt will be used for general corporate purposes including acquisitions of orinvestments in businesses or assets, capital expenditures, and workingcapital.
"The closing of this transaction represents another step taken to continueto reduce our total debt outstanding, deleverage our balance sheet, and reduceour cash interest obligations," said HealthSouth President and Chief ExecutiveOfficer, Jay Grinney. "By doing so, we will be able to apply more of the cashthat our business generates to invest in growth opportunities and for othergeneral corporate purposes."
HealthSouth is the nation's largest provider of inpatient rehabilitationservices. Operating in 26 states across the country and in Puerto Rico,HealthSouth serves more than 250,000 patients annually through its network ofinpatient rehabilitation hospitals, long-term acute care hospitals, outpatientrehabilitation satellites, and home health agencies. HealthSouth strives to bethe nation's preeminent provider of inpatient rehabilitation services.
Statements contained in this press release which are not historical factsare forward-looking statements. In addition, HealthSouth, through its seniormanagement, may from time to time make forward-looking public statementsconcerning the matters described herein. All such estimates, projections, andforward-looking information speak only as of the date hereof, and HealthSouthundertakes no duty to publicly update or revise such forward-lookinginformation, whether as a result of new information, future events, orotherwise. Such forward-looking statements are necessarily estimates basedupon current information and involve a number of risks and uncertainties.HealthSouth's actual results may differ materially from the resultsanticipated in these forward-looking statements as a result of a variety offactors. While it is impossible to identify all such factors, factors whichcould cause actual results to differ materially from those estimated byHealthSouth include, but are not limited to, any adverse outcome of variouslawsuits, claims, and legal or regulatory proceedings that may be broughtagainst us or any adverse outcome relating to the settlement of the federalsecurities class action previously disclosed by us; significant changes inHealthSouth's management team; HealthSouth's ability to continue to operate inthe ordinary course and manage its relationships with its creditors, includingits lenders, bondholders, vendors and suppliers, employees, and customers;changes, delays in, or suspension of reimbursement for HealthSouth's servicesby governmental or private payors; changes in the regulation of the healthcareindustry at either or both of the federal and state levels; competitivepressures in the healthcare industry and HealthSouth's response thereto;HealthSouth's ability to obtain and retain favorable arrangements withthird-party payors; HealthSouth's ability to attract and retain nurses,therapists, and other healthcare professionals in a highly competitiveenvironment with often severe staffing shortages; general conditions in theeconomy and capital markets; and other factors which may be identified fromtime to time in the Company's SEC filings and other public announcements,including HealthSouth's Form 10-K for the year ended December 31, 2007.
Andy Brimmer, 205-410-2777
SOURCE HealthSouth Corporation