Community Health Systems, Franklin, Tenn., plans to offer $1 billion in new notes through a wholly owned subsidiary, using the proceeds to pay down part of the parent company's $2.78 billion in notes due in 2015, according to a news release.
CHS to offer $1 billion in new notes
The new notes will be guaranteed on a senior basis by the parent company, the issuing subsidiary and certain subsidiaries of the parent and issuing subsidiary, according to the release. Community announced a tender offer to repurchase up to $1 billion of the 2015 notes last week.
Community did not release details about the interest rate or maturity of the new notes. Moody's Investors Service said the new notes should bring interest rate savings compared to the 2015 notes, which carry an interest rate of 8.875%, and would mature in 2019, according to a news release. Moody's rated the new notes B3 and left its overall corporate rating on Community unchanged at B1.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.