Encompass Health signs $1 billion credit agreement, extends maturity to March 2031
Encompass Health entered a new $1 billion revolving credit facility with Truist Bank as administrative agent on March 9, 2026, and used it to repay in full the remaining amounts under its 2022 credit agreement with Barclays. The new facility matures March 9, 2031, rather than October 7, 2027, and carries slightly lower fees and relaxed limits on investments, debt, liens and restricted payments. The refinancing extends the company's borrowing terms and loosens some covenants, which matters to shareholders because it changes the company's debt structure and flexibility.
Key points
- New $1 billion revolving credit facility dated March 9, 2026, with maturity on March 9, 2031
- On March 9, 2026, $250.0 million was drawn on the revolver to retire the 2022 Credit Agreement balance
- Covenants include minimum Interest Coverage Ratio of 3.00:1.00 and maximum Leverage Ratio of 4.50:1.00, except for a Significant Acquisition
- Accordion feature allows increases of the greater of $1.4 billion or 100% of trailing four-quarter Adjusted Consolidated EBITDA, subject to a 3.50:1.00 Senior Secured Leverage Ratio test
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:12 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on March 10, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.