<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        I:\CONVER\ny14211.eep                                            -->
     <!-- Control Number: NY14211                                                          -->
     <!-- Rev Number:     8-K                                                              -->
     <!-- Client Name:    Healthsouth Corp                                                 -->
     <!-- Project Name:   NY14211 - 8-K                                                    -->
     <!-- Firm Name:                                                                       -->
     <TITLE>8-K</TITLE>
</HEAD>
<BODY>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Center Bold 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> UNITED
STATES <BR>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></H1></TD></TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>FORM 8-K</B></FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CURRENT REPORT
<BR>Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934</B>  </FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Report (date of earliest event reported):&nbsp;&nbsp;March 22, 2005 (March 21, 2005)</FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>HEALTHSOUTH Corporation</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact Name of Registrant as Specified in its Charter)</FONT></TD></TR>
</TABLE>
<BR>


<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Delaware</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(State or Other Jurisdiction of Incorporation)</FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="8k Cover table 3" FSL="Project" -->
<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<tr Valign=BOTTOM>
<TD WIDTH="40%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2><U>1-10315</U><!-- File No.--></font></td>
<TD WIDTH="20%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<TD WIDTH="40%" ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2><U>63-0860407</U><!-- Irs No.--></font></td>
</tr>
<tr Valign=TOP>
<TD ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>(Commission File Number)</font></td>
<td ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<TD ALIGN="CENTER"><Font Face="Times New Roman, Times, Serif" Size=2>(IRS Employer Identification No.) </font></td>
</tr>
</table>
<BR>





<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
    <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>One HEALTHSOUTH Parkway, Birmingham, Alabama 35243</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Address of Principal Executive Offices, Including Zip Code) </FONT></TD></TR>
</TABLE>
<BR>


<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>(205) 967-7116</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Registrant's Telephone Number, Including Area Code) </FONT></TD></TR>
</TABLE>
<BR><BR>



<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions: </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=610 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act<BR> (17 CFR
240.14d-2(b)) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para List Hang" FSL="Project" -->
<TABLE WIDTH=610 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><font face="wingdings"> &#168; </font></TD>
<TD WIDTH=96%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act <BR>(17 CFR
240.13e-4(c)) </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Break Table" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE COLOR="BLACK">
</TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Head Left Bold 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM
1.01.&nbsp;&nbsp;&nbsp; <I>Entry into a Material Definitive Agreement.</I></FONT></H1></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March 21, 2005, HEALTHSOUTH Corporation (the &#147;Company&#148;) issued a press release,
a copy of which is attached hereto as Exhibit 99 and incorporated herein by reference,
announcing that it had entered into an amended and restated credit agreement (the
&#147;Restated Credit Agreement&#148;) with a consortium of financial institutions
(collectively, the &#147;Lenders&#148;), JPMorgan Chase Bank, N.A., as Administrative
Agent and Collateral Agent (&#147;JPMorgan&#148;), Wachovia Bank, National Association
(&#147;Wachovia&#148;), as Syndication Agent, and Deutsche Bank Trust Company Americas, as
Documentation Agent. The Restated Credit Agreement amends and restates the Credit
Agreement dated as of June 14, 2002, as amended on August 20, 2002 (the &#147;Original
Credit Agreement&#148;), among the Company, the lenders from time to time party thereto,
JPMorgan, as Administrative Agent, Wachovia, as Syndication Agent, UBS Warburg LLC, as
Co-documentation Agent, ScotiaBanc, Inc., as Co-documentation Agent, Deutsche Bank AG, New
York Branch, as Co-documentation Agent, and Bank of America, N.A., as Senior Managing
Agent. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Restated Credit Agreement, the Lenders converted $315 million in aggregate
principal amount of the loans outstanding under the Original Credit Agreement into a
senior secured term facility which, will mature on June 14, 2007 (the &#147;Term
Loans&#148;). Such maturity date for the Term Loans, however, will automatically be
extended to March 21, 2010 in the event that (1) such extension becomes permitted under
the Company&#146;s Senior Subordinated Credit Agreement (as defined in the Restated Credit
Agreement) or (2) such Senior Subordinated Credit Agreement ceases to be in effect. No
portion of the Term Loans that are repaid may be reborrowed. The Term Loans amortize in
quarterly installments, commencing with the quarter ending on September 30, 2005, equal to
0.25% of the original principal amount thereof, with the balance payable upon the final
maturity. Until the Company has obtained ratings from Moody&#146;s and S&amp;P, the Term
Loans bear interest, at the Company&#146;s option, at a rate of (1) LIBOR (adjusted for
statutory reserve requirements) plus 2.50% or (2) 1.50% plus the higher of (x) the Federal
Funds Rate plus 0.50% and (y) JPMorgan&#146;s prime rate. After the Company has obtained
such ratings, the Term Loans will bear interest, at the Company&#146;s option, (1) at a
rate of LIBOR (adjusted for statutory reserve requirements) plus a spread ranging from
2.00% to 2.50%, depending on the Company&#146;s ratings with such institutions or (2) at a
rate of a spread ranging from 1.00% to 1.50%, depending on the Company&#146;s ratings with
such institutions, plus the higher of (x) the Federal Funds Rate plus 0.50% and (y)
JPMorgan&#146;s prime rate. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the Restated Credit Agreement makes available to the Company a new senior
secured revolving credit facility in an aggregate principal amount of $250 million (the
&#147;Revolving Facility&#148;) and a new senior secured revolving letter of credit
facility in an aggregate principal amount of $150 million (the &#147;LC Facility&#148;).
The commitments under the Revolving Facility and the LC Facility expire, and all
borrowings under such facilities mature, on March 21, 2010. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Company files audited financial statements with the SEC for the fiscal year ended
December 31, 2004, the Revolving Facility will accrue interest at the Company&#146;s
option, at a rate of (1) LIBOR (adjusted for statutory reserve requirements) plus 2.75% or
(2) 1.75% plus the higher of (x) the Federal Funds Rate plus 0.50% and (y) JPMorgan&#146;s
prime rate. After the Company files audited financial statements with the SEC for the
fiscal year ended December 31, 2004, the interest rates and commitment fees on the
Revolving Facility will be determined based upon the Company&#146;s ratio of (1)
consolidated total indebtedness minus the amount by which the unrestricted cash and cash
equivalents on such date exceed $50 million to (2) adjusted consolidated EBITDA of the
Company for the period of four consecutive fiscal quarters ending on or most recently
prior to such date (the &#147;Net Leverage Ratio&#148;). During such period, the Revolving
Facility will bear interest, at the Company&#146;s option, (1) at a rate of LIBOR
(adjusted for statutory reserve requirements) plus a spread ranging from 1.75% to 2.75%,
depending on the Net Leverage Ratio or (2) at a rate of a spread ranging from 0.75% to
1.75%, depending on the Net Leverage Ratio, plus the higher of (x) the Federal Funds Rate
plus 0.50% and (y) JPMorgan&#146;s prime rate. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Company files audited financial statements with the SEC for the fiscal year ended
December 31, 2004, the Company is subject to commitment fees of 0.75% per annum on the
daily amount of the unutilized commitments under the Revolving Facility and the LC
Facility. After such filing, the commitment fees will range between 0.50% and 0.75%,
depending on the Net Leverage Ratio. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
letter of credit participation fee will be payable to the Lenders under the LC Facility
with respect to a particular commitment under the LC Facility on the aggregate face amount
of the commitment outstanding thereunder upon the later of the termination of the
particular commitment under the LC Facility and the date on which the Lenders letters of
credit exposure for such commitment cease, in an amount at any time equal to the LIBOR
interest rate spread applicable at such time to loans outstanding under the Revolving
Facility. In addition, the Company shall pay, for its own account, (1) a fronting fee of
0.25% per annum on the aggregate face amount of the letters of credit outstanding under
the LC Facility upon the later of the termination of the commitments under the LC Facility
and the date on which the Lenders letters of credit exposure for such commitment cease,<B>
</B>and (2) customary issuance and administration fees relating to the letters of credit. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proceeds of the loans under the Revolving Facility will be used for general corporate
purposes and the letters of credit under the LC Facility will be used in the ordinary
course of business to secure workers&#146; compensation and other insurance coverages and
for general corporate purposes. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to a Collateral and Guarantee Agreement (the &#147;Collateral and Guarantee
Agreement&#148;), dated as of March 21, 2005, between the Company and JPMorgan, the
Company&#146;s obligations under the Restated Credit Agreement are secured (1) by
substantially all of the assets of the Company and (2) from and after the date on which
the Restrictive Indentures (as defined in the Restated Credit Agreement) and the Senior
Subordinated Credit Agreement permit the obligations (or an amount thereof) to be
guaranteed by or secured by the assets of certain existing and subsequently acquired or
organized material subsidiaries of the Company by substantially all of the assets of such
subsidiaries. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Restated Credit Agreement contains customary representations, warranties affirmative and
negative covenants, default and acceleration provisions. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing descriptions of the Restated Credit Agreement and the Collateral and Guarantee
Agreement are qualified in their entirety to such agreements, copies of which are attached
hereto as Exhibits 10.1 and 10.2, respectively, and incorporated herein by reference. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM
2.03.&nbsp;&nbsp;&nbsp; <I>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance
Sheet Arrangement of a Registrant.</I></B> </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
disclosure included under Item 1.01 of this Current Report on Form 8-K is incorporated by
reference into this Item 2.03. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left Bold 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM
9.01.&nbsp;&nbsp;&nbsp; <I>Financial Statements and Exhibits.</I></FONT></H1></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Left" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)
&nbsp;&nbsp;&nbsp;&nbsp;     Exhibits.  </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Head Left 2 600" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See
Exhibit Index. </FONT></P></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Break Table" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE COLOR="BLACK">
</TD></TR></TABLE><BR>



<!-- MARKER FORMAT-SHEET="Head Center Bold 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto
duly authorized. </FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="44%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">HEALTHSOUTH CORPORATION<!-- COMPANY --> </FONT></TD>
  </TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Date By Signature" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="39%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="43%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;/s/ Gregory L. Doody   <!-- NAME --> </FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD>&nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Name Title Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="TOP">
    <TD WIDTH="57%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:&nbsp;</FONT></TD>
    <TD WIDTH="35%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gregory L. Doody <!-- NAME --></FONT></TD>
</TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:&nbsp;</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Executive Vice President,<BR>
&nbsp;&nbsp;&nbsp; General Counsel and Secretary<!-- TITLE --></FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Left 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated:&nbsp;&nbsp;&nbsp;
March 22, 2005 </FONT></P></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Break Table" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE COLOR="BLACK">
</TD></TR></TABLE><BR>


<!-- MARKER FORMAT-SHEET="Head Center Bold 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT
INDEX </FONT></H1></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibit Number</U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Description</U> </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Hang 0" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      10.1 </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Amended and Restated Credit Agreement dated as of March 21, 2005,
among HEALTHSOUTH Corporation, the lenders party thereto, JPMorgan Chase Bank,
N.A., as Administrative Agent and Collateral Agent, Wachovia Bank, National
Association, as Syndication Agent, Deutsche Bank Trust Company Americas, as
Documentation Agent, Deutsche Bank Securities Inc., as Arranger and J.P.
Morgan Securities Inc. and Wachovia Capital Markets, LLC as Co-Lead Arrangers
and Bookrunners.</FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang 0" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    10.2 </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Collateral
and Guarantee Agreement, dated as of March 21, 2005,
between HEALTHSOUTH Corporation and JPMorgan Chase Bank, N.A., as Collateral
Agent. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 0" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     99 </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Press
release of HEALTHSOUTH Corporation dated March 21, 2005.</FONT></TD>
</TR>
</TABLE>
<BR>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "wil407484.htm", "description": "FORM 8-K", "secsgml_size_bytes": 25284}]
{"company-data": {"conformed-name": "HEALTHSOUTH CORP", "cik": "0000785161", "assigned-sic": "8093", "irs-number": "630860407", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-14940", "film-number": "05697454"}, "business-address": {"street1": "ONE HEALTHSOUTH PKWY", "street2": "STE 224W", "city": "BIRMINGHAM", "state": "AL", "zip": "35243", "phone": "2059677116"}, "mail-address": {"street1": "ONE HEALTHSOUTH PARKWAY", "city": "BIRMINGHAM", "state": "AL", "zip": "35243"}, "former-company": {"former-conformed-name": "HEALTHSOUTH REHABILITATION CORP", "date-changed": "19920703"}}
8-K
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (date of earliest event reported):  March 22, 2005 (March 21, 2005)
HEALTHSOUTH Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-10315
63-0860407
(Commission File Number)
(IRS Employer Identification No.)
One HEALTHSOUTH Parkway, Birmingham, Alabama 35243
(Address of Principal Executive Offices, Including Zip Code)
(205) 967-7116
(Registrant's Telephone Number, Including Area Code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
ITEM
1.01.
Entry into a Material Definitive Agreement.
On
March 21, 2005, HEALTHSOUTH Corporation (the "Company") issued a press release,
a copy of which is attached hereto as Exhibit 99 and incorporated herein by reference,
announcing that it had entered into an amended and restated credit agreement (the
"Restated Credit Agreement") with a consortium of financial institutions
(collectively, the "Lenders"), JPMorgan Chase Bank, N.A., as Administrative
Agent and Collateral Agent ("JPMorgan"), Wachovia Bank, National Association
("Wachovia"), as Syndication Agent, and Deutsche Bank Trust Company Americas, as
Documentation Agent. The Restated Credit Agreement amends and restates the Credit
Agreement dated as of June 14, 2002, as amended on August 20, 2002 (the "Original
Credit Agreement"), among the Company, the lenders from time to time party thereto,
JPMorgan, as Administrative Agent, Wachovia, as Syndication Agent, UBS Warburg LLC, as
Co-documentation Agent, ScotiaBanc, Inc., as Co-documentation Agent, Deutsche Bank AG, New
York Branch, as Co-documentation Agent, and Bank of America, N.A., as Senior Managing
Agent.
Pursuant
to the Restated Credit Agreement, the Lenders converted $315 million in aggregate
principal amount of the loans outstanding under the Original Credit Agreement into a
senior secured term facility which, will mature on June 14, 2007 (the "Term
Loans"). Such maturity date for the Term Loans, however, will automatically be
extended to March 21, 2010 in the event that (1) such extension becomes permitted under
the Company's Senior Subordinated Credit Agreement (as defined in the Restated Credit
Agreement) or (2) such Senior Subordinated Credit Agreement ceases to be in effect. No
portion of the Term Loans that are repaid may be reborrowed. The Term Loans amortize in
quarterly installments, commencing with the quarter ending on September 30, 2005, equal to
0.25% of the original principal amount thereof, with the balance payable upon the final
maturity. Until the Company has obtained ratings from Moody's and S&P, the Term
Loans bear interest, at the Company's option, at a rate of (1) LIBOR (adjusted for
statutory reserve requirements) plus 2.50% or (2) 1.50% plus the higher of (x) the Federal
Funds Rate plus 0.50% and (y) JPMorgan's prime rate. After the Company has obtained
such ratings, the Term Loans will bear interest, at the Company's option, (1) at a
rate of LIBOR (adjusted for statutory reserve requirements) plus a spread ranging from
2.00% to 2.50%, depending on the Company's ratings with such institutions or (2) at a
rate of a spread ranging from 1.00% to 1.50%, depending on the Company's ratings with
such institutions, plus the higher of (x) the Federal Funds Rate plus 0.50% and (y)
JPMorgan's prime rate.
In
addition, the Restated Credit Agreement makes available to the Company a new senior
secured revolving credit facility in an aggregate principal amount of $250 million (the
"Revolving Facility") and a new senior secured revolving letter of credit
facility in an aggregate principal amount of $150 million (the "LC Facility").
The commitments under the Revolving Facility and the LC Facility expire, and all
borrowings under such facilities mature, on March 21, 2010.
Until
the Company files audited financial statements with the SEC for the fiscal year ended
December 31, 2004, the Revolving Facility will accrue interest at the Company's
option, at a rate of (1) LIBOR (adjusted for statutory reserve requirements) plus 2.75% or
(2) 1.75% plus the higher of (x) the Federal Funds Rate plus 0.50% and (y) JPMorgan's
prime rate. After the Company files audited financial statements with the SEC for the
fiscal year ended December 31, 2004, the interest rates and commitment fees on the
Revolving Facility will be determined based upon the Company's ratio of (1)
consolidated total indebtedness minus the amount by which the unrestricted cash and cash
equivalents on such date exceed $50 million to (2) adjusted consolidated EBITDA of the
Company for the period of four consecutive fiscal quarters ending on or most recently
prior to such date (the "Net Leverage Ratio"). During such period, the Revolving
Facility will bear interest, at the Company's option, (1) at a rate of LIBOR
(adjusted for statutory reserve requirements) plus a spread ranging from 1.75% to 2.75%,
depending on the Net Leverage Ratio or (2) at a rate of a spread ranging from 0.75% to
1.75%, depending on the Net Leverage Ratio, plus the higher of (x) the Federal Funds Rate
plus 0.50% and (y) JPMorgan's prime rate.
Until
the Company files audited financial statements with the SEC for the fiscal year ended
December 31, 2004, the Company is subject to commitment fees of 0.75% per annum on the
daily amount of the unutilized commitments under the Revolving Facility and the LC
Facility. After such filing, the commitment fees will range between 0.50% and 0.75%,
depending on the Net Leverage Ratio.
A
letter of credit participation fee will be payable to the Lenders under the LC Facility
with respect to a particular commitment under the LC Facility on the aggregate face amount
of the commitment outstanding thereunder upon the later of the termination of the
particular commitment under the LC Facility and the date on which the Lenders letters of
credit exposure for such commitment cease, in an amount at any time equal to the LIBOR
interest rate spread applicable at such time to loans outstanding under the Revolving
Facility. In addition, the Company shall pay, for its own account, (1) a fronting fee of
0.25% per annum on the aggregate face amount of the letters of credit outstanding under
the LC Facility upon the later of the termination of the commitments under the LC Facility
and the date on which the Lenders letters of credit exposure for such commitment cease,
and (2) customary issuance and administration fees relating to the letters of credit.
The
proceeds of the loans under the Revolving Facility will be used for general corporate
purposes and the letters of credit under the LC Facility will be used in the ordinary
course of business to secure workers' compensation and other insurance coverages and
for general corporate purposes.
Pursuant
to a Collateral and Guarantee Agreement (the "Collateral and Guarantee
Agreement"), dated as of March 21, 2005, between the Company and JPMorgan, the
Company's obligations under the Restated Credit Agreement are secured (1) by
substantially all of the assets of the Company and (2) from and after the date on which
the Restrictive Indentures (as defined in the Restated Credit Agreement) and the Senior
Subordinated Credit Agreement permit the obligations (or an amount thereof) to be
guaranteed by or secured by the assets of certain existing and subsequently acquired or
organized material subsidiaries of the Company by substantially all of the assets of such
subsidiaries.
The
Restated Credit Agreement contains customary representations, warranties affirmative and
negative covenants, default and acceleration provisions.
The
foregoing descriptions of the Restated Credit Agreement and the Collateral and Guarantee
Agreement are qualified in their entirety to such agreements, copies of which are attached
hereto as Exhibits 10.1 and 10.2, respectively, and incorporated herein by reference.
ITEM
2.03.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance
Sheet Arrangement of a Registrant.
The
disclosure included under Item 1.01 of this Current Report on Form 8-K is incorporated by
reference into this Item 2.03.
ITEM
9.01.
Financial Statements and Exhibits.
(c)
         Exhibits.
See
Exhibit Index.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto
duly authorized.
HEALTHSOUTH CORPORATION
By:
/s/ Gregory L. Doody
Name:
Gregory L. Doody
Title:
Executive Vice President,
General Counsel and Secretary
Dated:   
March 22, 2005
EXHIBIT
INDEX
Exhibit Number
Description
10.1
Amended and Restated Credit Agreement dated as of March 21, 2005,
among HEALTHSOUTH Corporation, the lenders party thereto, JPMorgan Chase Bank,
N.A., as Administrative Agent and Collateral Agent, Wachovia Bank, National
Association, as Syndication Agent, Deutsche Bank Trust Company Americas, as
Documentation Agent, Deutsche Bank Securities Inc., as Arranger and J.P.
Morgan Securities Inc. and Wachovia Capital Markets, LLC as Co-Lead Arrangers
and Bookrunners.
10.2
Collateral
and Guarantee Agreement, dated as of March 21, 2005,
between HEALTHSOUTH Corporation and JPMorgan Chase Bank, N.A., as Collateral
Agent.
99
Press
release of HEALTHSOUTH Corporation dated March 21, 2005.