Community Health driving by with $1.44 billion secured notes due 2030; price talk 6¼% area

By Paul A. Harris

Portland, Ore., May 4 – CHS/Community Health Systems Inc. plans to price a $1.44 billion offering of junior priority secured notes due April 1, 2030 (Caa3) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Price talk is in the 6¼% area, tight to initial guidance in the low-to-mid 6% area.

Books close at 1:30 p.m. ET on Tuesday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, Capital One Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Truist Securities Inc. are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after April 1, 2025 at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The Franklin, Tenn.-based health care services provider plans to use the proceeds to redeem all of its junior priority secured notes due 2024.

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