CHS/Community Health amends credit agreement to permit ABL facility

By Tali Rackner

Minneapolis, March 26 – Community Health Systems, Inc. and its wholly owned subsidiary CHS/Community Health Systems, Inc. entered into a fourth amendment on Friday to its credit agreement dated July 25, 2007 with Credit Suisse AG as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement allows CHS/Community Health to incur debt under either an up to $1 billion asset-based loan facility or maintain its asset-backed securitization program.

The revolving credit commitments will be reduced to $425 million upon the effectiveness of the expected ABL facility.

The amendment also removes the secured net leverage incurrence test with respect to junior secured debt.

At amendment close, the total principal amount of term G loans is $1,037,348,605.50 and the total principal amount of term H loans is $1,902,634,486.07.

Term G loans initially accrue interest at Libor plus 300 basis points. Term H Loans initially accrue interest at Libor plus 325 bps.

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

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