Community Health unit tenders for $700 million of 8⅞% notes due 2015

By Susanna Moon

Chicago, March 7 - Community Health Systems, Inc. said its wholly owned subsidiary CHS/Community Health Systems, Inc. began a cash tender offer for up to $700 million of its $1,784,331,000 principal amount of outstanding of 8⅞% senior notes due 2015.

The total purchase price is $1,047.50, including a $30.00 premium, for each $1,000 principal amount of notes tendered by 5 p.m. ET on March 20, the early tender date.

The company also will pay accrued interest to the settlement date, which is expected to be March 21 for early tendered notes.

Holders may tender notes until 5 p.m. ET on April 4, the offer expiration, but will only receive the base payment of $1,047.50 per $1,000 of notes after the consent date.

Tendered notes may be withdrawn until the early tender deadline.

If the amount of tendered notes exceeds the offer cap, then notes will be purchased on a prorated basis.

The offer is conditioned on issuance of at least $750 million of debt and enough funding to purchase the tendered notes.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) is the dealer manager. D.F. King & Co., Inc. (800 488-8095 or collect 212 269-5550) is the information agent for the tender offer.

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

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