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Community Health unit gets no more tenders in offer since consent date
By Susanna Moon
Chicago, Aug. 1 - Community Health Systems, Inc. said that no additional notes were tendered in the offer for wholly owned subsidiary CHS/Community Health Systems, Inc.'s $934 million outstanding principal amount of 8 7/8% senior notes due 2015 after the consent expiration at 5 p.m. ET on July 17.
The tender offer ended at 5 p.m. ET on Aug. 1. The offer began on July 3.
As previously noted, holders tendered $639,705,000, or 68.5%, of the notes by the consent deadline.
As a result, the company received the needed consents to amend the notes and executed a supplemental indenture, which became operative when the tendered notes were purchased on July 18. The issuer had solicited consents to eliminate most of the covenants and events of default.
The total purchase price was $1,026 for each $1,000 principal amount of notes tendered by the consent deadline, which included a premium of $20.00 per $1,000 of notes.
Holders who tendered after the consent date were to receive the base payment of $1,006 per $1,000 of notes.
The company also paid accrued interest up to but not including the settlement date.
Funding for the tender offer came from the proceeds of new senior unsecured debt.
Completion of the tender offer and consent solicitation was conditioned on receipt of consents from holders of a majority of the outstanding notes and completion of financing.
D.F. King & Co., Inc. (800 290-6427) is the tender and information agent. Credit Suisse Securities (USA) LLC (800 820-1653 and collect 212 538-2147) is the dealer manager and solicitation agent.
Community Health is a Nashville, Tenn.-based operator of hospitals.
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