Community Health wraps oversubscribed tender offer for 8 7/8% notes

By Susanna Moon

Chicago, Dec. 7 - Community Health Systems, Inc. subsidiary CHS/Community Health Systems, Inc. said it completed the oversubscribed tender offer for up to $1 billion of its $2,784,331,000 of 8 7/8% senior notes due 2015 after purchasing the notes on a prorated basis.

The offer expired at midnight ET on Dec. 6. The offer began Nov. 9.

The company said on Nov. 22 that it received early tenders for $2,516,020,000, or 90.36%, of the notes.

Community Health said at the time that it accepted tendered notes for purchase at a proration factor of 39.7861% because the offer was oversubscribed.

For each $1,000 principal amount, the Franklin, Tenn.-based hospital operator said it paid $1,047.50, which includes a $30.00 early tender payment for those who tendered prior to 5 p.m. ET on Nov. 21.

The company also paid accrued interest to Nov. 22.

The offer was conditioned on debt financing of at least $1 billion.

Community Health priced $1 billion of eight-year senior notes at par to yield 8% on Nov. 14.

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

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