Community Health Systems, Inc. Announces Pricing of Senior Secured Notes Due 2030

Rhea-AI Summary

Community Health Systems (NYSE: CYH) has announced the pricing of a $1.535 billion offering of 5.250% Senior Secured Notes due 2030. The offering aims to redeem all outstanding 6.625% Senior Secured Notes due 2025 and cover related expenses. The transaction is anticipated to close around February 4, 2022, subject to standard closing conditions. The notes are being offered to qualified institutional buyers in the U.S. and internationally, but they are not registered under the Securities Act. This announcement does not serve as a notice of redemption for the 2025 Notes.

Positive

• Pricing of $1.535 billion offering of 5.250% Senior Secured Notes due 2030.
• Intended use of proceeds for redeeming higher-interest 6.625% Senior Secured Notes due 2025.

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• None.

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”), has priced an offering of $1,535.0 million aggregate principal amount of its 5.250% Senior Secured Notes due 2030 (the “Notes”) (the “Notes Offering”). The sale of the Notes is expected to be consummated on or about February 4, 2022, subject to customary closing conditions.

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 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/20220120006052/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 offering amount of Community Health Systems' Senior Secured Notes?

Community Health Systems announced a $1.535 billion offering of 5.250% Senior Secured Notes due 2030.

What will the proceeds from the Notes Offering be used for?

The proceeds will be used to redeem all outstanding 6.625% Senior Secured Notes due 2025 and to cover related fees and expenses.

When is the expected closing date for the Notes Offering?

The expected closing date for the Notes Offering is around February 4, 2022.

Who can purchase the Senior Secured Notes from Community Health Systems?

The Notes are being offered to qualified institutional buyers in the United States and internationally.

Are the Senior Secured Notes registered under the Securities Act?

No, the Senior Secured Notes have not been registered under the Securities Act and may not be sold in the United States without registration or an applicable exemption.