Community Health Systems, Inc. - CYH STOCK NEWS

Community Health Systems (NYSE: CYH) has announced a cash tender offer for up to $1 billion of its 6.250% Senior Secured Notes due 2023. The total principal amount outstanding is approximately $2.675 billion. The Tender Offer is set to expire on January 11, 2021, unless extended. Holders who tender by December 24, 2020, will receive an early tender payment of $30 for each $1,000 in notes. The offer is contingent upon completing a debt financing yielding at least $1.05 billion. Citigroup Global Markets is acting as the dealer manager for the offer.

Community Health Systems, Inc. (NYSE: CYH) announced a privately negotiated agreement with a multi-asset investment manager to exchange $700 million of 6.875% Senior Unsecured Notes due 2028 for $400 million in cash and 10 million newly issued shares. This transaction, set to close on December 9, 2020, will lead to a $48 million reduction in annual interest expenses for the company. The notes will be cancelled post-exchange, leaving approximately $767 million outstanding. The company will utilize cash on hand for the exchange funding.

Community Health Systems, Inc. (NYSE: CYH) will participate in the BofA Securities 2020 Virtual Leveraged Finance Conference from November 30 to December 2, 2020. The investor presentation is scheduled for December 1, 2020, at 9:00 a.m. Eastern time. A live audio webcast will be available on the company's investor relations website, with a replay accessible afterward. Community Health Systems is a major operator of general acute care hospitals in the U.S., managing 89 hospitals across 16 states and approximately 14,000 licensed beds.

Community Health Systems (CYH) announced the early tender results for its cash tender offers for various notes, totaling up to $400 million. As of November 13, 2020, about $86 million in notes were validly tendered. The company will accept all tendered notes as they do not exceed the maximum purchase price. The settlement date is set for November 17, 2020. Notably, the company failed to receive the necessary consents from 2022 note holders for proposed amendments, keeping the original indenture terms intact unless consents are obtained by November 30, 2020.

Community Health Systems (CYH) has initiated cash tender offers to purchase up to $400 million of its outstanding debt, including 6.875% Senior Notes due 2022 and 8.125% Junior-Priority Secured Notes due 2024. The offers will prioritize the acceptance of the notes based on established levels, subject to proration. The early tender deadline is November 13, 2020, with an expected early settlement date of November 17, 2020. The company's intention is to utilize cash reserves for these purchases, alongside potential amendments to the restrictive covenants of the 2022 Notes.

Community Health Systems (NYSE: CYH) announced on October 27, 2020, that Wayne T. Smith will transition from Chief Executive Officer to Executive Chairman of the Board, effective January 1, 2021. Tim L. Hingtgen, the current President and COO, will succeed Smith as CEO. This leadership change is part of a long-term succession plan. Smith has led the company for nearly 23 years, while Hingtgen has been with Community Health Systems since 2008. The company aims to enhance operational excellence and patient care through strategic initiatives and leadership continuity.

Community Health Systems (NYSE: CYH) reported Q3 2020 financial results with net operating revenues of $3.126 billion, a 3.7% decline from Q3 2019. Net income attributable to common stockholders was $112 million or $0.97 per diluted share, recovering from a net loss of $(17) million in 2019. Adjusted EBITDA improved to $431 million, up from $388 million. However, admissions decreased 13.0% compared to last year, reflecting ongoing pandemic impacts. For the nine months ended September 30, 2020, net revenues fell 12.6% to $8.670 billion.

Community Health Systems (NYSE: CYH) has announced the completion of the sale of two Texas hospitals to Hendrick Health System, effective October 27, 2020. The divested facilities include the 231-bed Abilene Regional Medical Center and the 188-bed Brownwood Regional Medical Center, along with their associated assets. Following this transaction, Community Health Systems will continue to operate seven hospitals in Texas. This sale aligns with the company's strategy of divesting certain assets, as previously discussed in its second quarter 2020 earnings call.

Community Health Systems (NYSE: CYH) announced the sale of San Angelo Community Medical Center, a 171-bed facility in Texas, to subsidiaries of Shannon Health System, effective October 24, 2020. This divestiture aligns with the company’s strategic focus discussed in their Q2 2020 earnings call, aimed at optimizing their operational framework and financial position. Community Health Systems operates 91 hospitals across 16 states, with approximately 15,000 licensed beds, solidifying its status as a leading hospital operator in the U.S.