CHS/Community Health Systems Completes $2.8 Billion Senior Secured Notes Offering and Concurrent Tender Offer
12.28.20
This is only gets display when printing
Simpson Thacher represented CHS/Community Health Systems, Inc. (the “Company”), a wholly owned subsidiary of Community Health Systems, Inc. (“Community Health Systems”) (NYSE: CYH), in refinancing transactions that included (1) a Rule 144A/Regulation S offering of approximately $1.9 billion aggregate principal amount of 5.625% Senior Secured Notes due 2027 (the “2027 Notes”) and $900 million aggregate principal amount of 6% Senior Secured Notes due 2029 (together with the 2027 Notes, the “Notes”), and (2) a concurrent tender offer for its 6.25% Senior Secured Notes due 2023 (the “2023 Notes”) (the “Concurrent Tender Offer”). The Company intends to use the net proceeds of the offering of Notes to repurchase and/or redeem all of its outstanding 2023 Notes and to pay related fees and expenses. In particular, the Company intends to use the net proceeds from the offering of Notes to (i) purchase all of its 2023 Notes that are validly tendered and accepted for purchase in the Concurrent Tender Offer, (ii) to the extent the aggregate principal amount of 2023 Notes validly tendered and accepted for purchase in the Concurrent Tender Offer is less than the entire aggregate principal amount of 2023 Notes outstanding, redeem or repurchase (in one or more open market repurchases and/or privately negotiated transactions) all of the 2023 Notes that remain outstanding.
Community Health Systems is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals and outpatient facilities in communities across the country.
The Simpson Thacher team included Richard Fenyes, Lia Toback, Evan Zuckerman and Frances Fuqua (Capital Markets); Jonathan Pall (Collateral); Tim Gallagher (Real Estate); Andrew Purcell, Jon Cantor and Eli Shalam (Tax); Larry Moss and Jason Fixelle (Executive Compensation and Employee Benefits); Alysha Sekhon (Intellectual Property); and Vanessa Burrows (Healthcare).