Community Health Systems announces tender offer consideration for 2027 notes

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), currently trading at $2.46 and down nearly 49% over the past year, announced Monday the consideration payable for its previously announced cash tender offer to purchase any and all outstanding 5.625% Senior Secured Notes due 2027. According to InvestingPro data, the healthcare provider carries a substantial $11.49 billion in total debt.

The company’s wholly owned subsidiary, CHS/Community Health Systems, Inc., will pay $1,002.65 per $1,000 principal amount for notes that were validly tendered by the early deadline. This amount includes an early tender premium of $30 per $1,000 principal amount.

According to the announcement, $1.74 billion of the $1.76 billion in outstanding notes were tendered by the early deadline and accepted for purchase. The consideration was determined based on a fixed spread of 50 basis points plus the 4.293% yield of the specified U.S. Treasury security.

Settlement for notes tendered by the early deadline is expected to occur on August 12, 2025. Holders whose notes are purchased will also receive accrued and unpaid interest up to, but not including, the settlement date.

Notes tendered after the early deadline but before the expiration time of 5:00 p.m., New York City time, on August 25, 2025, will receive the early tender consideration minus the early tender payment.

The tender offer remains subject to certain conditions as outlined in the company’s offer to purchase document. Citigroup Global Markets Inc. is acting as dealer manager for the tender offer.

The company noted in its press release that the announcement does not constitute an offer to buy or sell securities or a notice of redemption of the 2027 notes.

In other recent news, Community Health Systems reported its Q2 2025 earnings, revealing a narrower-than-expected loss with an EPS of -$0.05, surpassing the forecast of -$0.10. The company’s revenue also exceeded expectations, reaching $3.13 billion compared to the anticipated $3.02 billion. Additionally, Community Health Systems announced that $1.74 billion of its 5.625% Senior Secured Notes due 2027 were validly tendered by the early deadline in its cash tender offer, representing about 98.8% of the outstanding notes. In another development, the company priced an offering of $1.79 billion aggregate principal amount of 9.750% Senior Secured Notes due 2034, increasing the offering size by $290 million from the initial announcement. Community Health Systems also launched a cash tender offer for up to $1.47 billion of its 5.625% Senior Secured Notes due 2027. The company plans to offer $1.5 billion in Senior Secured Notes due 2034, intending to use the proceeds to refinance a portion of its outstanding notes. These actions reflect the company’s ongoing efforts to manage its financial obligations.

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