Community Health, subsidiary get lender consents for amendment

By Jennifer Chiou

New York, Nov. 21 - Community Health Systems Inc. announced that it and wholly owned subsidiary CHS/Community Health Systems, Inc. received the needed lender consents for proposed amendments to increase flexibility under their credit agreement.

According to a news release, the amendment allows the company more leeway to make investments and restricted payments and incur debt related to acquisitions,

Pricing remains unchanged.

Community Health said it added a one-year 1% prepayment premium payable in connection with a repricing of the extended term loans due 2017.

The changes also amend other terms of the credit agreement, including the maximum leverage ratio and interest coverage ratio financial covenant levels.

The anticipated effective date for the amendment is Nov. 26.

Community Health is a Franklin, Tenn.-based operator of general acute care hospitals.

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