Kindred Healthcare plans $550 million senior notes offering

Kindred HealthcareMay 16 2011

Kindred Healthcare, Inc. (the "Company" or "Kindred") (NYSE:KND) today announced that it is planning to issue an aggregate principal amount of up to $550 million of senior notes due 2019 (the "notes") to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to certain non-United States persons in offshore transactions in accordance with Regulation S under the Securities Act.

Kindred intends to use the net proceeds from the sale of the notes and borrowings under certain senior secured credit facilities to fund its previously announced acquisition of RehabCare Group, Inc. ("RehabCare") (NYSE:RHB) and to repay outstanding indebtedness of Kindred and RehabCare. The notes are expected to be guaranteed by substantially all of Kindred's domestic 100% owned subsidiaries, including, following the acquisition, RehabCare and its domestic 100% owned subsidiaries.