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Community Health gives early results of capped tender for 8% notes
By Wendy Van Sickle
Columbus, Ohio, Dec. 28 – Community Health Systems, Inc. gave the early results of wholly owned subsidiary CHS/Community Health Systems, Inc.’s cash tender offer for up to $985 million of its $2,101,000,000 outstanding principal amount of 8% senior secured notes due 2026 (Cusips: 12543DBC3, U17127AL2), according a press release.
By the early deadline, 5 p.m. ET on Dec. 22, holders had submitted tenders of $1,946,236,000 principal amount of the notes. Because the cap was exceeded, the company will accept tendered notes at a proration factor of 50.6% to keep to the cap of $985 million principal amount of notes accepted.
Settlement was set for Dec. 28.
The company announced the offer on Dec. 11 with an original cap of $735 million, and announced it was increasing the maximum to $985 million later the same day. 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 offered a total consideration per $1,000 principal amount of $1,000, which includes an early tender payment of $30. Holders were also to receive accrued interest to the settlement date.
The offer will expire at 5 p.m. ET on Jan. 10, but the issuer does not expect to accept any further tenders.
The company planned 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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