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Credit agreement revised; CHS gains flexibility on acquisitions




By Beth Kutscher
Posted: November 25, 2012 - 12:01 am ET

Community Health Systems, Franklin, Tenn., has received consents from its lenders for an amendment to an existing credit agreement that will increase its ability to make buys.

The publicly traded system said in a news release that the amendment increases its flexibility to incur debt related to acquisitions as well as make investments and restricted payments, which typically include dividends and share buybacks.
The amendment also modifies other terms of the credit agreement, such as its maximum leverage ratio, which determines how much debt it can carry, as well as its interest coverage ratio.

The amendment becomes effective Monday.

Community Health System's last acquisition was of Memorial Health Systems, York, Pa., in July for an undisclosed amount.
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