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Community Health obtains $1 billion five-year ABL credit agreement
By Tali Rackner
Minneapolis, April 4 – Community Health Systems, Inc. and wholly owned subsidiary CHS/Community Health Systems, Inc. entered into a $1 billion five-year asset-based loan credit agreement on April 3, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA is the administrative agent.
The facility includes a $50 million sublimit for letters of credit.
Borrowings bear interest at Libor plus 225 basis points to 275 bps, depending on excess availability.
The commitment fee ranges from 50 bps to 62.5 bps, based on average use.
Initially, interest is Libor plus 250 bps and the commitment fee is 50 bps.
The facility matures on April 3, 2023. The ABL includes a 91-day springing maturity applicable if more than $250 million of CHS/Community Health’s 8% senior notes due 2019, term G loans due 2019, 7 1/8% senior notes due 2020, term H loans due 2021, 5 1/8% senior secured notes due 2021, 6 7/8% senior notes due 2022 or 6¼% senior secured notes due 2023 or refinancings thereof scheduled to mature or similarly become due on a date before April 3, 2023.
The revolving credit commitments under CHS/Community Health credit agreement dated July 25, 2007 were reduced to $425 million upon the effectiveness of the ABL facility.
JPMorgan, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Bank of America, NA, RBC Capital Markets, LLC and Wells Fargo Bank, NA acted as joint lead arrangers and bookrunners on the ABL facility. Deutsche Bank Securities Inc., Goldman Sachs Bank USA, SunTrust Bank and Siemens Financial Services, Inc. acted as co-documentation agents.
Community Health is a Franklin, Tenn., hospital company.
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