Community Health unit gets tenders for 68.5% of 8 7/8% notes so far

By Susanna Moon

Chicago, July 18 - Community Health Systems, Inc. said that holders tendered $639,705,000, or 68.5%, of wholly owned subsidiary CHS/Community Health Systems, Inc.'s $934 million outstanding principal amount of 8 7/8% senior notes due 2015 by the consent expiration at 5 p.m. ET on July 17.

The issuer is soliciting consents to eliminate most of the covenants and events of default.

As a result, the company received the needed consents to amend the notes and plans to execute a supplemental indenture, which was to become operative when the tendered notes are purchased on July 18, according to a press release by the parent company.

The total purchase price will be $1,026 for each $1,000 principal amount of notes tendered by the consent deadline, which includes a premium of $20.00 per $1,000 of notes.

As previously noted, holders who tender after the consent date will receive the base payment of $1,006 per $1,000 of notes.

The tender offer will continue until 5 p.m. ET on Aug. 1. The offer began on July 3.

The company also will pay accrued interest up to but not including the settlement date.

Tendered notes may no longer be withdrawn.

Funding for the tender offer will come from the proceeds of new senior unsecured debt.

Completion of the tender offer and consent solicitation is conditioned on receipt of consents from holders of at least a majority of the outstanding notes and completion of financing.

D.F. King & Co., Inc. (800 290-6427) is the tender and information agent. Credit Suisse Securities (USA) LLC (800 820-1653 and collect 212 538-2147) is the dealer manager and solicitation agent.

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

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