Billionaire Glenn Russell Dubin‘s Highbridge Capital Management recently filed a Form 13G with the SEC to report an increase to its stake in Healthsouth Corp (NYSE:HLS). The fund now holds ownership over 5.07 million common shares (which include 5.04 million common shares issuable upon the exercise of warrants), which amass 5.3% of the company’s outstanding stock. Previously, the fund’s stake consisted of 2.59 million shares, as per its 13F filing for the reporting period of June 30.
Healthsouth is a company that owns and runs inpatient rehabilitative hospitals, providing post-acute healthcare services. Since the beginning of the year, the company’s shares have increased by 16.2%. For the second quarter of 2016, the company disclosed earnings per share of $0.69 and revenue of $920.7 million, with both figures beating analysts’ estimates, which had predicted $0.60 in EPS and $906.67 million in revenue. At the beginning of this month, SunTrust Banks Inc. set a price target of $54 on HealthSouth’s stock, while keeping its ‘Buy’ rating on it. The price target is 34% higher than the stock’s current price.
Investors in our database that were bullish on Healthsouth Corp (NYSE:HLS) at the end of June, aside from Highbridge Capital Management, included Arthur B Cohen and Joseph Healey’s Healthcor Management LP, which held a $56.29 million position, Jim Simons’ Renaissance Technologies, with a position valued at $14.66 million, Kris Jenner, Gordon Bussard, and Graham Mcphail’s Rock Springs Capital Management, and Chuck Royce’s Royce & Associates.
Some of the new investors in Healthsouth Corp (NYSE:HLS) during the second quarter included Principal Global Investors’ Columbus Circle Investors, which initiated a $10.36 million position, and Dmitry Balyasny’s Balyasny Asset Management, which had $3.05 million invested in the company at the end of June.
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You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Highbridge Capital Management | 0 | 5,066,918 | 0 | 5,066,918 | 5,066,918 | 5.3% |
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Page 1 of 6 – SEC Filing
| SECURITIES AND EXCHANGE COMMISSION | |
| Washington, D.C. 20549 | |
| SCHEDULE 13G | |
| Under the Securities Exchange Act of 1934 | |
| (Amendment No. )* | |
| Healthsouth | |
| (Name of Issuer) | |
| Common Stock, | |
| (Title of Class of Securities) | |
| 421924309 | |
| (CUSIP Number) | |
| August 10, | |
| (Date of event which requires filing of this statement) | |
| Check the appropriate box to designate the rule pursuant to which this Schedule 13G is filed: | |
| ¨ | Rule 13d-1(b) |
| x | Rule 13d-1(c) |
| ¨ | Rule 13d-1(d) |
| (Page 1 of 6 Pages) | |
______________________________
*The remainder of this cover page shall
be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any
subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
The information required in the remainder
of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of
1934 (“Act“) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other
provisions of the Act (however, see the Notes)
Page 2 of 6 – SEC Filing
| 1 | NAMES OF REPORTING PERSONS Highbridge Capital Management, LLC | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) ¨ | ||
| 3 | SEC USE ONLY | |||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION State of Delaware | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 5 | SOLE VOTING POWER 0 | ||
| 6 | SHARED VOTING POWER 5,066,918 shares of Common Stock (including 5,043,312 shares of Common Stock issuable upon exercise of warrants) | |||
| 7 | SOLE DISPOSITIVE POWER 0 | |||
| 8 | SHARED DISPOSITIVE POWER 5,066,918 shares of Common Stock (including 5,043,312 shares of Common Stock issuable upon exercise of warrants) | |||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,066,918 shares of Common Stock (including 5,043,312 shares of Common Stock issuable upon exercise of warrants) | |||
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES | ¨ | ||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 5.3% | |||
| 12 | TYPE OF REPORTING PERSON IA, OO | |||
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Page 3 of 6 – SEC Filing
| Item 1(a). | NAME OF ISSUER: |
| The name of the issuer is Healthsouth Corporation (the “Company“). |
| Item 1(b). | ADDRESS OF ISSUER’S PRINCIPAL EXECUTIVE OFFICES: |
| The Company’s principal executive offices are located at 3660 Grandview Parkway, Suite 200, Birmingham, Alabama 35243. |
| Item 2(a). | NAME OF PERSON FILING: |
| Item 2(b). | ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE: |
| Item 2(c). | CITIZENSHIP: |
| This statement is filed by: | ||
| Highbridge Capital Management, LLC 40 West 57th Street, 33rd Floor New York, New York 10019 Citizenship: State of Delaware | ||
| The foregoing person is hereinafter sometimes referred to as the “Reporting Person.” | ||
| Item 2(d). | TITLE OF CLASS OF SECURITIES: |
| Common Stock, par value $0.01 per share (the “Common Stock“). |
| Item 2(e). | CUSIP NUMBER: |
| 421924309 |
| Item 3. | IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b) OR 13d-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A: |
| (a) | ¨ | Broker or dealer registered under Section 15 of the Act, | |
| (b) | ¨ | Bank as defined in Section 3(a)(6) of the Act, | |
| (c) | ¨ | Insurance Company as defined in Section 3(a)(19) of the Act, | |
| (d) | ¨ | Investment Company registered under Section 8 of the Investment Company Act of 1940, | |
| (e) | ¨ | An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E); | |
| (f) | ¨ | Employee Benefit Plan or Endowment Fund in accordance with Rule 13d-1(b)(1)(ii)(F), |
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Page 4 of 6 – SEC Filing
| (g) | ¨ | Parent Holding Company or control person in accordance with Rule 13d-1(b)(1)(ii)(G), | |
| (h) | ¨ | Savings Association as defined in Section 3(b) of the Federal Deposit Insurance Act, | |
| (i) | ¨ | A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act; | |
| (j) | ¨ | A non-U.S. institution in accordance with Rule 13d-1(b)(1)(ii)(J); | |
| (k) | ¨ | Group, in accordance with Rule 13d-1(b)(1)(ii)(K). |
| If filing as a non-U.S. institution in accordance with Rule 13d-1(b)(1)(ii)(J), please | |||
| specify the type of institution: | |||
| Item 4. | OWNERSHIP. |
| (a) Amount beneficially owned: | |
| As of the date hereof, Highbridge Capital Management, LLC, as the trading manager of STAR L.P. (a statistical arbitrage strategy), Highbridge International LLC and Highbridge Tactical Credit & Convertibles Master Fund, L.P. and as the sub-adviser of the JPMorgan Funds – Highbridge US STEEP Fund (collectively, the “Highbridge Funds“), may be deemed to be the beneficial owner of 5,066,918 shares of Common Stock (including 5,043,312 shares of Common Stock issuable upon exercise of warrants) held by the Highbridge Funds. | |
| (b) Percent of class: | |
| Except as set forth below, the percentages used herein and in the rest of this Schedule 13G are calculated based upon 89,770,417 shares of Common Stock outstanding as of July 22, 2016, as reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 filed with the Securities and Exchange Commission on July 29, 2016 and assumes the exercise of the reported warrants. Therefore, as of the date hereof, Highbridge Capital Management, LLC may be deemed to beneficially own approximately 5.3% of the outstanding shares of Common Stock of the Company. | |
| The foregoing should not be construed in and of itself as an admission by the Reporting Person as to beneficial ownership of the shares of Common Stock held by the Highbridge Funds. |
| Item 5. | OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS. |
| Not applicable. |
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Page 5 of 6 – SEC Filing
| Item 6. | OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON. |
| See Item 4. |
| Item 7. | IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY. |
| Not applicable. |
| Item 8. | IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP. |
| Not applicable. |
| Item 9. | NOTICE OF DISSOLUTION OF GROUP. |
| Not applicable. |
| Item 10. | CERTIFICATION. |
| The Reporting Person hereby makes the following certification: | |
| By signing below the Reporting Person certifies that, to the best of its knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. |
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Page 6 of 6 – SEC Filing
SIGNATURES
After reasonable
inquiry and to the best of our knowledge and belief, the undersigned certifies that the information set forth in this statement
is true, complete and correct.
DATED: August 17, 2016
| HIGHBRIDGE CAPITAL MANAGEMENT, LLC | ||
| By: | /s/ John Oliva | |
| Name: John Oliva | ||
| Title: Managing Director | ||
