Community Health offers to buy back up to $900 million of 5 1/8% notes

By Angela McDaniels

Tacoma, Wash., May 2 – Community Health Systems, Inc. subsidiary CHS/Community Health Systems, Inc. has begun a tender offer for up to $900 million of its $1.6 billion outstanding 5 1/8% senior secured notes due 2018, according to a company news release.

The tender offer will expire at 5 p.m. ET on May 31.

The total consideration is $1,023 per $1,000 principal amount of notes. This includes an early tender payment of $30 per $1,000 principal amount of notes tendered by the early tender deadline, 5 p.m. ET on May 13.

The issuer will also pay accrued interest up to but excluding the payment date, which is expected to be May 16 for notes tendered by the early tender deadline.

If the amount of notes tendered exceeds the cap, the issuer will accept notes for purchase on a prorated basis.

The issuer plans to finance the tender offer with a portion of the roughly $1.2 billion of cash it received from the proceeds of financing arrangements entered into by Quorum Health Corp. as part of the spinoff of Quorum Health.

The dealer manager is Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147). The information agent is D.F. King & Co., Inc. (866 829-0135 or 212 269-5550).

Community Health Systems is a hospital company based in Franklin, Tenn.

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