Community Health edits ABL facility, ups letter-of-credit capacity

By Wendy Van Sickle

Columbus, Ohio, Nov. 12 – Community Health Systems, Inc. and subsidiary CHS/Community Health Systems, Inc. as borrower entered into an amendment to the asset-based loan facility on Tuesday to increase the portion of the commitments that are available in the form of letters of credit to $200 million from $50 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also designates about $145 million in letters of credit outstanding under the borrower’s existing cash-flow based revolving credit facility as letters of credit outstanding under the asset-based loan facility.

Effectiveness of the amendment is conditioned on the commitments under the revolving facility having been terminated and that all debt outstanding under the revolver having been repaid in full.

As previously announced, the borrower plans to terminate the revolving facility in connection with some refinancing transactions.

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

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