Community Health Systems has wrapped a $900 million tack-on to its 6.25% senior secured notes due 2023, following a $200 million increase, sources said. Credit Suisse was left lead on the transaction, which cleared at the middle of talk. The deal was launched for funds to refinance the company’s existing term loan A due 2019. The borrower will use the additional proceeds for general corporate purposes, which may include the repayment of debt, sources said. In March, the company first issued $2.2 billion of the notes. Franklin, Tenn.–based Community Health (NYSE: CYH) owns, leases, and operates general acute care hospitals in the U.S. Terms:
| Issuer | Community Health Systems |
| Ratings | BB-/Ba3 |
| Amount | $900 million (add-on) |
| Issue | senior secured notes (SEC-registered) |
| Coupon | 6.25% |
| Price | 101.75 |
| Yield | 5.83% (YTW) |
| Spread | T+389 |
| Maturity | March 31, 2023 |
| Call | callable on March 31, 2020 @ 103.125 |
| Trade | May 9, 2017 |
| Settle | May 12, 2017 (T+3) |
| Bookrunners | CS/BAML/C/CACIB/DB/GS/JPM/RBC/STRH/WFS |
| Price talk | 101.5-102 |
| Notes | Upsized by $200 million; add-on brings full amount issued to $3.1 billion; change of control put @ 101; up to 40% equity claw until March 31, 2020 at 106.25%; make-whole @ T+50 |
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