Community Health Systems ups tender cap for 8% notes to $985 million

By Wendy Van Sickle

Columbus, Ohio, Dec. 11 – Community Health Systems, Inc. said wholly owned subsidiary CHS/Community Health Systems, Inc. lifted the cap of its cash tender offer for its $2,101,000,000 outstanding principal amount of 8% senior secured notes due 2026 (Cusips: 12543DBC3, U17127AL2) to $985 million, according a press release Monday evening.

The company announced the offer earlier in the day with an original cap of $735 million. The news of the increase in the tender offer cap followed news that the company upsized its new issue of eight-year senior secured notes to $1 billion from $750 million.

The company is offering a total consideration per $1,000 principal amount of $1,000, which includes an early tender payment of $30 that will be paid only to holders who tender by the early deadline, 5 p.m. ET on Dec. 22, which is also the withdrawal deadline.

The offer will expire at 5 p.m. ET on Jan. 10.

Holders will also receive accrued interest to the settlement date.

If the issuer elects to have an early settlement, it is expected to occur on Dec. 28.

The company plans to use the proceeds from its offering of senior secured notes due Jan. 15, 2032 to fund the tender offer, which is conditioned on that financing yielding gross cash proceeds of at least $735 million.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager.

Global Bondholder Services Corp. (855 654-2015, 212 430-3774 or contact@gbsc-usa.com) is the depositary and information agent.

Community Health Systems is a Franklin, Tenn.-based health care provider.

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