Community Health ups extended term loan spread to Libor plus 350 bps

By Sara Rosenberg

New York, Nov. 4 - Community Health Systems Inc. increased pricing on its proposed extended term loan to Libor plus 350 basis points from Libor plus 325 bps, according to a market source. Pricing on the non-extended debt is Libor plus 225 bps.

As before, the company is looking to push out the maturity on $1.5 billion of its term loan debt to January 2017 from July 2014.

In addition, although the amendment would still allow the company to issue senior secured debt if a 3.5 times first-lien incurrence test is met, proceeds from that debt would now be limited to acquisitions or to repay secured debt, the source said.

The springing maturity on the extended term loan was left unchanged. If the company's senior notes are not refinanced by April 2015, the springing maturity will be in effect.

Credit Suisse is leading the amendment and extension.

Lenders are being offered a 10 bps amendment fee.

Community Health is a Nashville, Tenn.-based hospital company.

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