Community Health Systems Announces Pricing of Senior Secured Notes Due 2025
January 23 2020 - 6:50PM
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 $1.462
billion aggregate principal amount of its 6.625% Senior Secured
Notes due 2025 (the “Notes”). The sale of the Notes is expected to
be consummated on or about February 6, 2020, subject to customary
closing conditions. The size of the offering was increased by
approximately $442 million aggregate principal amount subsequent to
the initial announcement of the offering.
The Issuer intends to use the net proceeds of the offering of
Notes to (i) purchase any and all of its 5.125% Senior Secured
Notes due 2021 (the “2021 Notes”) validly tendered and not validly
withdrawn in the cash tender offer announced on January 23, 2020,
(ii) redeem all of the 2021 Notes that are not purchased pursuant
to such tender offer, (iii) purchase in one or more privately
negotiated transactions or redeem approximately $425.5 million
aggregate principal amount of its 6.250% Senior Secured Notes due
2023 and (iv) pay related fees and expenses.
The Notes are being offered in the United States to 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200123005876/en/
Investor Contacts: Kevin J. Hammons Executive Vice
President and Chief Financial Officer 615-465-7000
Ross W. Comeaux Vice President – Investor Relations
615-465-7012
Media Contact: Tomi Galin Senior Vice President,
Corporate Communications, Marketing and Public Affairs
615-628-6607
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