Community Health unit wraps oversubscribed tender offer for notes

By Susanna Moon

Chicago, April 5 - Community Health Systems, Inc. said the tender offer expired at 5 p.m. ET on Wednesday for its wholly owned subsidiary CHS/Community Health Systems, Inc.'s outstanding 8 7/8% senior notes due 2015.

As previously announced, the company offered to purchase up to $850 million of the notes and accepted tendered notes for purchase using a proration factor of 50.8%.

Holders had tendered $1,671,713,000, or 93.7%, of the notes by the early tender deadline at midnight ET on March 20.

The notes were settled on March 21.

The company began the offer to purchase up to $700 million of the notes on March 7 and raised the tender offer cap to $850 million the following day.

As previously noted, the total purchase price was $1,047.50, including a $30.00 premium, for each $1,000 principal amount of notes tendered by the early tender deadline.

The company also will pay accrued interest to the settlement date.

The offer was conditioned on issuance of at least $750 million of debt with enough funding to purchase the tendered notes.

Community Health Systems priced an upsized $1 billion add-on to its 8% senior notes due Nov. 15, 2019 at 102.5 on March 7.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) is the dealer manager. D.F. King & Co., Inc. (800 488-8095 or collect 212 269-5550) is the information agent for the tender offer.

Community Health is a Nashville, Tenn.-based operator of hospitals.

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