Community Health Systems, Inc. Announces Offering of $1.095 Billion of Senior Secured Notes Due 2031

Rhea-AI Summary

Community Health Systems today announced a proposed offering of $1.095 billion in Senior Secured Notes due 2031 through its subsidiary. The proceeds will be used to redeem all outstanding 8.625% Senior Secured Notes due 2024 and cover related expenses. The offering is targeting qualified institutional buyers in the U.S. and will comply with SEC regulations. This announcement does not serve as a redemption notice for the 2024 Notes and is subject to market conditions.

Positive

• The offering of $1.095 billion in Senior Secured Notes due 2031 could enhance the company's debt structure.
• Intended use of proceeds aims to improve financial stability by redeeming higher interest 8.625% Notes due 2024.

Negative

• The need to issue new notes may indicate ongoing financial pressures.

Community Health Systems, Inc. (the “Company”) (NYSE: CYH) today announced that its wholly owned subsidiary, CHS/Community Health Systems, Inc. (the “Issuer”), intends to offer $1.095 billion aggregate principal amount of Senior Secured Notes due 2031 (the “Notes”), subject to market and other conditions (the “Notes Offering”).

The Issuer intends to use the net proceeds of the Notes Offering, together with cash on hand, to redeem all of its outstanding 8.625% Senior Secured Notes due 2024 (the “2024 Notes”) and to pay related fees and expenses. This press release shall not constitute a notice of redemption for the 2024 Notes.

The Notes will be offered in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the Notes will be made only by means of a private offering memorandum. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act.

Forward-Looking Statements

This press release may include information that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126005628/en/

FAQ

What is the purpose of the Notes Offering by CYH?

Community Health Systems intends to use the proceeds to redeem outstanding 8.625% Senior Secured Notes due 2024.

How much is Community Health Systems planning to raise with the Senior Secured Notes?

The company plans to raise $1.095 billion from the offering.

When are the new Senior Secured Notes due?

The new Senior Secured Notes are due in 2031.

Who can purchase the Senior Secured Notes offered by CYH?

The notes will be offered to qualified institutional buyers in the U.S. and outside the U.S. in compliance with SEC regulations.

What interest rate is associated with the outstanding 2024 Notes being redeemed?

The outstanding 2024 Notes carry an interest rate of 8.625%.