| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2007 > News item |
Community Health extends tender for 6½% notes
By Susanna Moon
Chicago, June 25 - Community Health Systems, Inc. said it extended the tender offer for its $300 million of 6½% senior subordinated notes due 2012 to midnight ET on July 30.
The expiration date was extended from July 10. The tender offer was originally set to expire June 27.
The company also is resetting the pricing date to 10 a.m. ET July 16 from June 25.
As of 7 a.m. ET June 25, the company received tenders and consents worth $299.9 million, representing 99.99% of the total outstanding principal amount of the notes.
In addition to the tender, the company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and eliminate or modify some events of default, some conditions to defeasance of the notes and related conditions. The proposed amendments require consent from holders of a majority of the notes.
For each $1,000 principal amount of notes tendered by the consent deadline, the payout is equal to the present value, minus accrued interest, of $1,032.50 plus the remaining scheduled interest payments to Dec. 15, 2008. The payout is based on a yield to the redemption date equal to 50 basis points over the yield of the 3 3/8% U.S. Treasury due Dec. 15, 2008.
Notes tendered after the consent deadline will receive the same amount, less a consent payment of $30.00 per $1,000 principal amount.
Holders may not tender notes without soliciting consents.
Settlement of the offer depends on conditions including the completion of the company's merger with Triad Hospitals, Inc. and FWCT-1 Acquisition Corp., the availability of sufficient funds and the receipt of consents from holders of a majority of the notes.
Credit Suisse (212 325-7596) and Wachovia Securities (866 309-6316 or collect 704 715-8341) are the dealer managers. D.F. King & Co., Inc. (800 769-7666 or collect 212 269-5550) is the information agent.
Community Health is a hospital chain operator based in Franklin, Tenn.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.