09:21 AM EDT, 06/25/2024 (MT Newswires) -- Select Medical Holdings ( SEM ) and Concentra Group Holdings said Tuesday that Concentra Escrow Issuer, a unit of Concentra Health Services, has begun offering $750 million in senior notes that mature in 2032.

The notes are offered as part of Select's plan to pursue a separation of Concentra, its occupational health services business, as well as Concentra Escrow Issuer's merger with Concentra Health Services.

Concentra Escrow will hold the gross proceeds from the offering until the merger is complete, which is expected in Q3.

If the merger is not consummated before Sept 30, the notes will be subject to a special mandatory redemption at 100% of the initial issue price, plus accrued and unpaid interest.

Concentra plans to use $50 million of the net proceeds from the offering for general corporate purposes and pay the remainder, together with the borrowings under its proposed new senior secured credit facility, to Select Medical ( SEM ) as a dividend.