Integrated health services provider Encompass announced Thursday that it is soliciting consents from senior holders of its notes, a financial move that would pave the way for the Birmingham, AL-based firm to separate its home health and hospice business.
The solicitation of notes occurs when a company wants to amend the terms of bonds in order to alter the terms of the original contract.
The company began a strategic review of its home health and hospice businesses at the end of last year which could result in an initial public offering, spin-off, sale or merger. Encompass CEO Mark Tarr told analysts during an earnings call at the end of October that Encompass hoped to announce a decision on the two businesses in January or February of next year.
Encompass said in a press release that pursuing the consent solicitation would provide the company with “greater flexibility in affecting the separation,” but the action wouldn’t necessarily lead to a separation of the home health and hospice businesses, regardless of the number of consents received.
The consent solicitation will expire at 5 p.m. EST on Dec. 15, 2021.
