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Community Health add-on notes price at 101.75 to yield 5.83%; terms

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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