Published on 6/28/2018 in the Prospect News High Yield Daily.
New Issue: Community Health prices upsized $1.03 billion 8 5/8% 5.5-year notes to yield 8¾%
By Paul A. Harris
Portland, Ore., June 28 – CHS/Community Health Systems priced and upsized $1,032,607,000 issue of 8 5/8% 5.5-year senior secured notes (B3) at 99.457 to yield 8¾% on Thursday, according to market sources.
The issue size was increased from $1,027,000,000.
The yield printed in the middle of yield talk in the 8¾% area.
Orders were heard to be 1.5-times to two-times book size, with at least $300 million of reverse inquiry, sources said.
Credit Suisse Securities (USA) LLC was the left bookrunner for the Rule 144A and Regulation S for life offering. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The Franklin, Tenn.-based publicly traded hospital company plans to use the proceeds to refinance its term loan G due in 2019.
| Issuer: | CHS/Community Health Systems
|
| Amount: | $1,032,607,000, increased from $1,027,000,000
|
| Maturity: | Jan. 15, 2024
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8 5/8%
|
| Price: | 99.457
|
| Yield: | 8¾%
|
| Spread: | 599 bps
|
| First call: | Jan. 15, 2021 at 104.313
|
| Equity clawback: | 40% at 108.625 until Jan. 15, 2021
|
| Trade date: | June 28
|
| Settlement date: | July 6
|
| Rating: | Moody's: B3
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
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