Community Health seeks to extend $1.5 billion of term loan to 2017

By Sara Rosenberg

New York, Oct. 29 - Community Health Systems Inc. held a lender call on Friday morning to launch an amendment and extension proposal, under which it is looking to push out the maturity on $1.5 billion of its term loan debt to January 2017 from July 2014, according to a market source.

The extended term loan would be priced at Libor plus 325 basis points, up from Libor plus 225 bps on the non-extended debt.

In addition, the amendment would provide for a springing maturity on the extended term loan to April 2015 if the company's senior notes are not refinanced by that date, the source said.

Lastly, the amendment would allow the company to issue senior secured debt if a 3.5 times first-lien incurrence test is met.

Credit Suisse is leading the amendment and extension and is seeking consents/commitments from lenders by Thursday.

Lenders are being offered a 10 bps amendment fee.

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

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