Simpson Thacher represented CHS/Community Health Systems, Inc. (the “Issuer”), a wholly owned subsidiary of Community Health Systems, Inc. (“Community Health Systems”) (NYSE: CYH), in refinancing transactions including (1) a Rule 144A/Regulation S offering of $1.225 billion aggregate principal amount of additional 10.875% Senior Secured Notes due 2032 (the “Tack-On Notes”) and (2) entry into a Second Amendment and Restatement Agreement to amend and extend their existing ABL Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other agents party thereto. The Tack-On Notes were issued under the same indenture as the $1.0 billion of the Issuer’s 10.875% Senior Secured Notes due 2032 issued on December 22, 2023 and constitute part of the same series as such existing notes. The net proceeds from the Tack-On Notes offering were used to redeem all $1.116 billion aggregate principal amount of the Issuer’s outstanding 8.000% senior secured notes due 2026, to fund approximately $100 million of repurchases of other existing notes of the Issuer, to pay related fees and expenses and for general corporate purposes.
Community Health Systems is one of the nation’s largest healthcare companies. Its affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 40 distinct markets across 15 states.
The Simpson Thacher team included Richard Fenyes, Lia Toback, Catherine Ciriello, Jessica Ryan and Leena Sanka (Capital Markets); Bill Sheehan, Mari Zaldivar and Sabrina Suen (Credit); Jonathan Pall (Collateral); Vanessa Burrows and Jacob Madden (Healthcare); Tim Gallagher (Real Estate); Jon Cantor and Jiha Min (Tax); Jeanne Annarumma and Pasco Struhs (Executive Compensation and Employee Benefits); and Courtney Welshimer, Alysha Sekhon and Bobbie Burrows (Intellectual Property).