A Medical Device Daily

Select Medical Holdings (Mechanicsburg, Pennsylvania) the parent of Select Medical, reported that it had received notice of the exercise of the underwriters' over-allotment option to purchase an additional 3,602,700 shares of Select's common stock at a price per share of $10, which is expected to close Wednesday, subject to customary closing conditions. The over-allotment option was granted in connection with Select's initial public offering of 30 million shares, which closed Sept. 30.

Total additional net proceeds to Select from the exercise of the over-allotment option are expected to be about $33.9 million. Select intends to use the net proceeds from the exercise of the over-allotment option to repay indebtedness. Any remaining net proceeds will be used for general corporate purposes, the company said.