CHS/Community Health talks $1.03 billion 5.5-year notes at 8¾% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., June 27 – CHS/Community Health Systems talked $1,027,000,000 of 5.5-year senior secured notes to yield in the 8¾% area, according to a syndicate source.

Books close at 11 a.m. ET on Thursday, and the deal is set to price thereafter.

The deal was scheduled to be shopped on an investor conference call late Wednesday morning.

Credit Suisse Securities (USA) LLC is the left bookrunner for the Rule 144A and Regulation S for life offering. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

The notes become callable after 2.5 years at par plus 50% of the coupon and feature a 40% 2.5-year equity clawback and a 101% poison put.

The Franklin, Tenn.-based publicly traded hospital company plans to use the proceeds to refinance its term loan G due in 2019.

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