Community Health Systems, Inc. (NYSE: CYH) has announced a tack-on offering of $1,125.0 million 10.875% senior secured notes due 2032. The company's wholly owned subsidiary, CHS/Community Health Systems, Inc., intends to use the net proceeds of the notes offering to redeem all of its outstanding 8.000% senior secured notes due 2026, to pay related fees and expenses, and for general corporate purposes, including the repayment of a portion of outstanding indebtedness.
This press release does not constitute a notice of redemption for the 2026 notes. The tack-on notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act.
It's important to note that the tack-on notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale would be unlawful.
Any offers of the tack-on notes will be made only by means of a private offering memorandum. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act. The market has reacted to these announcements by moving the company's shares -2.5% to a price of $3.55. For the full picture, make sure to review Community Health Systems's 8-K report.
