Community Health plans to repay cash-flow revolver, pay down ABL facility via new notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 29 – Community Health Systems, Inc. subsidiary CHS/Community Health Systems, Inc. plans to repay and terminate its cash-flow based revolver and repay borrowings outstanding under its ABL facility with proceeds of a $500 million tack-on offering of 8% senior secured notes due 2027, according to a news release.

The issuer also plans to redeem all $121 million of its outstanding 7 1/8% senior notes due May 15, 2020 with proceeds of the tack-on notes, which are expected to be issued in addition to $700 million of the new notes planned as a partial consideration in an exchange offer for the issuer’s $2,632,000,000 of existing 6 7/8% senior notes due 2022.

Community Health is a Franklin, Tenn., hospital company.

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