Community Health Systems, Inc. Announces Offering of $1,440 Million of Junior-Priority Secured Notes Due 2030

Rhea-AI Summary

Community Health Systems (NYSE: CYH) has announced a proposed offering of $1.44 billion in Junior-Priority Secured Notes due 2030. The funds will be used to redeem existing 8.125% Junior-Priority Secured Notes due 2024 and cover related expenses. The offering is aimed at qualified institutional buyers under Rule 144A and is not registered under the Securities Act. This press release is not an offer to sell or a solicitation and contains forward-looking statements involving risks and uncertainties.

Positive

• Proceeds of $1.44 billion will be used to refinance existing debt, potentially lowering interest expenses.
• The offering targets institutional buyers, which may indicate strong institutional interest.

Negative

• The company is refinancing existing debt, indicating potential liquidity issues.
• The Notes have not been registered under the Securities Act, which may limit investor access.

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 $1,440 million aggregate principal amount of Junior-Priority Secured Notes due 2030 (the “Notes”), subject to market and other conditions (the “Notes Offering”).

The Issuer intends to use the net proceeds from the Notes Offering, together with cash on hand, to redeem all of its outstanding 8.125% Junior-Priority Secured Notes due 2024 and to pay related fees and expenses.

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/20210504005724/en/

FAQ

What is the purpose of the $1.44 billion Notes Offering by CYH?

CYH intends to use the proceeds to redeem outstanding 8.125% Junior-Priority Secured Notes due 2024.

What are the risks associated with the Notes Offering from CYH?

The offering may involve risks like market conditions and liquidity issues as it aims to refinance existing debt.

Who can purchase the Junior-Priority Secured Notes offered by CYH?

The Notes are being offered to qualified institutional buyers under Rule 144A.

What maturity date do the new Notes from CYH have?

The new Junior-Priority Secured Notes are due in 2030.