Community Health Systems, Inc. Announces Pricing of Senior Secured Notes Due 2031

Rhea-AI Summary

Community Health Systems, Inc. (NYSE: CYH) has announced the pricing of a $1.095 billion offering of 4.750% Senior Secured Notes due 2031. The offering is expected to close around February 9, 2021, subject to standard conditions. The net proceeds will be used to redeem all outstanding 8.625% Senior Secured Notes due 2024 and cover related expenses. The notes will be offered to institutional buyers under specific U.S. regulations and are not registered under the Securities Act, meaning they cannot be sold in the U.S. without proper registration.

Positive

• Successfully pricing $1.095 billion in Senior Secured Notes may strengthen the company's financial position.
• Redeeming higher-interest 8.625% Notes could lower future interest expenses.

Negative

• Offering unregistered securities may limit the investor pool and increase compliance risks.

Community Health Systems, Inc. (the “Company”) (NYSE: CYH) today announced that its wholly owned subsidiary, CHS/Community Health Systems, Inc. (the “Issuer”), has priced an offering of $1.095 billion aggregate principal amount of its 4.750% Senior Secured Notes due 2031 (the “Notes”) (the “Notes Offering”). The sale of the Notes is expected to be consummated on or about February 9, 2021, subject to customary closing conditions.

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.

The Notes are being 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/20210126006121/en/

FAQ

What is the purpose of Community Health Systems' $1.095 billion notes offering?

The proceeds will be used to redeem all outstanding 8.625% Senior Secured Notes due 2024 and to pay related fees.

When is the expected closing date for the notes offering by CYH?

The closing of the notes offering is expected on or about February 9, 2021.

What are the terms of the new Senior Secured Notes issued by Community Health Systems?

The new notes are priced at 4.750% and are due in 2031.

Who can purchase the Senior Secured Notes from CYH?

The notes are being offered to qualified institutional buyers in the U.S. and to investors outside the U.S.

Are the Senior Secured Notes registered under the Securities Act?

No, these notes have not been registered and cannot be sold in the U.S. without proper registration.