Select Medical Holdings Corporation (NYSE: SEM), today announced that Select Medical Corporation proposes to commence an offering through a private placement, subject to market and other conditions, of $500 million in aggregate principal amount of senior notes due 2026. The notes will be senior unsecured obligations of Select and will be guaranteed by certain of Select's subsidiaries.

Select intends to use a portion of the net proceeds of the offering, together with a portion of the proceeds from a proposed incremental term loan, to redeem in full the $710.0 million aggregate principal amount of Select's outstanding 6.375% Senior Notes due 2021 at the applicable redemption price of 100% of the principal amount thereof, plus interest accrued to, but excluding, the date of redemption, to repay in full the outstanding borrowings under Select's revolving credit facility, including any accrued and unpaid interest thereon, and to pay related fees and expenses.