Community Health Systems Launches $700M Add-on to $2.2B 6.25% Notes

Community Health Systems has launched a $700 million tack-on to its 6.25% senior secured notes due 2023 via a bookrunner group led by Credit Suisse (left).

An investor call will be held today at 10.30 a.m. EDT, for pricing thereafter.

Proceeds will be used to refinance the company’s existing term loan A due 2019.

The tack-on notes will carry the same call schedule as the $2.2 billion issue of 6.25% secured notes due 2023, with which they will be immediately fungible. The non-call period will stand for just under three years until March 31, 2020, when they become callable at 103.125.

The 6.25% secured notes due 2013 were issued in March and at $2.2 billion, the print was the largest high-yield deal of the year. The notes were quoted at 102.875 at close yesterday and are unchanged this morning.

The rest of the bookrunner group includes Bank of America Merrill Lynch, Citi, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, J.P. Morgan, RBC Capital Markets, SunTrust Robinson Humphrey, and Wells Fargo. BBVA, FifthThird, Morgan Stanley, and Scotiabank are co-managers on the deal.

Franklin, Tenn.–based Community Health (NYSE: CYH) owns, leases, and operates general acute care hospitals in the U.S. — Rachel McGovern

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