Modern Healthcare Mobile

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.
Breaking Healthcare News ACOs Finance Government Affairs Healthcare IT Payers Safety and Quality Physicians Search
Current Issue

Loading icon for Modern Healthcare Mobile

Switch to the new Modern Healthcare Daily News app

For the best experience of on your mobile phone, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.