Community Health shifts funds between loans, firms term G at 99.75 OID

By Sara Rosenberg

New York, May 14 – Community Health Systems Inc. upsized its covenant-light term loan G due December 2019 to $1.6 billion from $1 billion and downsized its covenant-light term loan H due January 2021 to about $2.94 billion from about $3.54 billion, according to a market source.

In addition, the original issue discount on the term loan G firmed at 99.75, the tight end of the 99.5 to 99.75 talk, the source said.

As before, the term loan G is priced at Libor plus 275 basis points with a 1% Libor floor, and the term loan H is priced at Libor plus 300 bps with a 1% Libor floor and a par issue price.

Both term loans still have 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC; RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS AG, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the roughly $4.54 billion in term loans (Ba2/BB/BB).

Proceeds will be used to refinance an existing term loan D due January 2021 that is priced at Libor plus 325 bps with a 1% Libor floor.

Community Health is a Nashville, Tenn.-based hospital company.

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