Community Health ups senior secured credit facility to $1.5 billion

By Sara Rosenberg

New York, March 5 - Community Health Systems Inc. increased the size of its senior secured credit facility (Ba3/BB) due Oct. 25, 2016 to $1.5 billion from $1.2 billion credit facility, according to a news release.

The facility now consists of a $750 million revolver, up from $700 million, and a $750 million term loan A, up from $500 million.

Pricing on both tranches firmed in line with initial talk at Libor plus 250 basis points.

The revolver has a 50 bps unused fee.

Amortization on the term loan is 5% in year one, 10% in years two and three, 15% in year four and 60% in year five.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, California Bank, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance an existing revolver and pay down non-extended term loan borrowings.

Closing is expected to take place on Tuesday.

Community Health is a Nashville, Tenn.-based operator of hospitals.

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