Community Health Systems refinancing debt with $1.25 billion loan

By Sara Rosenberg

New York, June 20 - Community Health Systems Inc. is currently in the process of refinancing its existing debt through a new $1.25 billion credit facility. JPMorgan Chase and Bank of America are the lead bank on the deal, which was launched on Tuesday, according to market sources.

The loan consists of a $450 million six-year revolver with an interest rate of Libor plus 225 basis points and an $800 million eight-year term loan B with an interest rate of Libor plus 250 basis points. Upfront fees for the revolver were set at 75 basis points for a commitment of $15 million and 100 basis points for a commitment of $25 million, according to market sources.

Security is a perfected first priority interest in the capital stock of CHS/Community Health Systems Inc. and its wholly owned subsidiaries.

The Brentwood, Tenn. provider of general hospital healthcare services loan is expected to close in the beginning of July.

Standard & Poor's rates the new loan at BB-.

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