Community Health Systems completes tender offer for 5.625% notes

Published 26/08/2025, 13:06
Community Health Systems completes tender offer for 5.625% notes

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), currently trading at $2.72 and operating with an EBITDA of $1.26 billion, announced Tuesday the completion of its cash tender offer for 5.625% Senior Secured Notes due 2027, with an additional $7.89 million in notes tendered after the early deadline.

According to the company’s statement, CHS’s wholly owned subsidiary, CHS/Community Health Systems, Inc., has now accepted a total of approximately $1.74 billion in aggregate principal amount of the notes, representing about 99.2% of the outstanding notes. InvestingPro analysis shows the company maintains a strong free cash flow yield despite carrying total debt of $11.49 billion.

The healthcare provider had previously reported that $1.74 billion in notes, or 98.77% of the total, were tendered by the early deadline of August 8. The tender offer expired on Monday, August 25, at 5:00 p.m. New York City time.

The final settlement for notes tendered after the early deadline but before the expiration time is expected to occur on Wednesday, August 27. Following the completion of the tender offer, approximately $13.75 million of the notes will remain outstanding.

The tender offer was subject to certain conditions outlined in the company’s Offer to Purchase dated July 28, 2025.

Community Health Systems operates general acute care hospitals across the United States. The information in this article is based on a company press release statement.

In other recent news, Community Health Systems, Inc. has been actively managing its debt through several financial maneuvers. The company reported strong early tender results, with $1.74 billion of its 5.625% Senior Secured Notes due 2027 being validly tendered, representing approximately 98.8% of the outstanding notes. This follows the announcement of a cash tender offer consideration, where the company will pay $1,002.65 per $1,000 principal amount for notes tendered by the early deadline, including an early tender premium. Additionally, Community Health Systems has priced a $1.79 billion offering of 9.750% Senior Secured Notes due 2034, which was increased by $290 million from the initial announcement. The company also launched a $1.47 billion tender offer for its secured notes, targeting approximately $1.76 billion in outstanding notes. Furthermore, Community Health Systems plans to offer $1.5 billion in Senior Secured Notes due 2034, with the intention of using the proceeds to refinance a portion of its existing notes through a tender offer or redemption. These developments highlight the company’s strategic approach to managing its financial obligations.

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