Community Health calls remaining 4.25% convertibles

By Angela McDaniels

Seattle, Dec. 16 - Community Health Systems Inc. said it will redeem the remaining $136.624 million of its outstanding 4.25% convertible subordinated notes due 2008 on Jan. 17.

The company will pay 101.821% of par plus accrued interest up to the redemption date.

Up to the close of business on Jan. 13, holders can convert the notes at a conversion price of $33.50 per share. Community Health stock closed at $39.05 Friday.

This follows the company's Nov. 14 call for redemption of $150 million of the convertibles.

Community Health said that the amount of cash available to redeem the notes is limited by the indenture for its 6½% senior notes due 2012, but that it would redeem the remaining convertibles if enough holders converted instead of accepting cash.

The company redeemed $288,000 of the convertibles. Holders converted $149,712,000 of the convertibles called for redemption, plus an additional $876,000 of the convertibles, into 4,495,083 shares of the company's common stock.

Community Health is a Brentwood, Tenn., operator of general acute care hospitals in non-urban communities.

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