Community Health Systems launches $1.47 billion tender offer for secured notes

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), a prominent healthcare provider with $12.6 billion in annual revenue and currently trading at $2.77, announced Monday that its subsidiary has commenced a cash tender offer for up to $1.47 billion of its 5.625% Senior Secured Notes due 2027. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite recent market volatility.

The tender offer, initiated by CHS/Community Health Systems, Inc., targets approximately $1.76 billion in outstanding notes, part of the company’s total debt position of $11.5 billion. Holders who tender their notes by the early deadline of August 8, 2025, will receive the full tender consideration, which includes a premium of $30 per $1,000 principal amount.

The offer will expire on August 25, 2025, unless extended or terminated earlier. Notes tendered after the early deadline but before expiration will receive the tender consideration minus the early tender premium.

The company may elect to settle early tenders before the final expiration date, with an expected early payment date of August 12, 2025, if it chooses to exercise this option.

The purchase price will be determined based on a fixed spread of 50 basis points over the yield of the 4.875% U.S. Treasury Notes due November 30, 2025. Tendered notes may be subject to proration if the offer is oversubscribed.

The tender offer is contingent upon CHS completing a debt financing that yields gross proceeds of at least $1.5 billion, among other conditions.

Citigroup Global Markets Inc. is acting as dealer manager for the tender offer, with Global Bondholder Services Corporation serving as the depositary and information agent.

The information is based on a press release statement from Community Health Systems, which operates a network of hospitals across the United States. The company maintains a healthy current ratio of 1.59 and generated $136 million in levered free cash flow over the last twelve months. For deeper insights into CYH’s financial health and detailed analysis, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro, where you’ll find expert research reports and advanced financial tools.

In other recent news, Community Health Systems reported its Q2 2025 earnings, revealing a narrower-than-expected loss. The company posted an EPS of -$0.05, beating the forecasted -$0.10. Revenue also exceeded expectations, reaching $3.13 billion, while analysts had anticipated $3.02 billion. Additionally, Community Health Systems announced plans to offer $1.5 billion in Senior Secured Notes due 2034 through its wholly owned subsidiary. The proceeds from this offering, along with cash on hand, are intended to refinance a portion of its outstanding 5.625% Senior Secured Notes due 2027. These recent developments highlight the company’s efforts to manage its financial obligations and improve its financial standing.

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