Community Health Systems, Inc. Announces Offering of $1,535.0 Million of Senior Secured Notes Due 2030

Rhea-AI Summary

Community Health Systems, Inc. (NYSE: CYH) announced plans to offer $1,535.0 million in Senior Secured Notes due 2030. The net proceeds will be used to redeem outstanding 6.625% Senior Secured Notes due 2025 and cover related expenses. The offering targets qualified institutional buyers and will be conducted under Rule 144A and Regulation S of the Securities Act. This communication is not a solicitation for securities nor does it constitute a notice of redemption.

Forward-looking statements are included, highlighting potential risks and uncertainties.

Positive

• Intended use of proceeds supports financial restructuring by redeeming higher-interest notes.
• The offering targets qualified institutional buyers, potentially enhancing market confidence.

Negative

• The issuance of new debt increases financial leverage, which could heighten risk for investors.
• The offering is subject to market conditions, which may affect the pricing and success of the Notes.

FRANKLIN, Tenn.--(BUSINESS WIRE)-- 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 $1,535.0 million aggregate principal amount of Senior Secured Notes due 2030 (the “Notes”), subject to market and other conditions (the “Notes Offering”).

The Issuer intends to use the net proceeds of the Notes Offering to redeem all of its outstanding 6.625% Senior Secured Notes due 2025 (the “2025 Notes”) and to pay related fees and expenses. This press release shall not constitute a notice of redemption for the 2025 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/20220118006268/en/

Investor Contacts:

Kevin J. Hammons, 615-465-7000

President and Chief Financial Officer

or

Ross W. Comeaux, 615-465-7012

Vice President – Investor Relations

Media Contact:

Tomi Galin, 615-628-6607

Executive Vice President, Corporate Communications, Marketing and Public Affairs

Source: Community Health Systems, Inc.

FAQ

What is the purpose of the Senior Secured Notes offering by Community Health Systems (CYH)?

The offering aims to raise $1,535.0 million to redeem existing 6.625% Senior Secured Notes due 2025.

What is the due date for the new Senior Secured Notes offered by CYH?

The Senior Secured Notes are due in 2030.

Who can purchase the Senior Secured Notes being offered by Community Health Systems (CYH)?

The Notes will be offered to qualified institutional buyers under Rule 144A and internationally under Regulation S.

What are the risks associated with the new Notes offering by CYH?

The offering is subject to market conditions, and increased financial leverage may pose risks to investors.