Community Health Systems prices $1.79 billion secured notes offering

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), whose stock has declined over 31% in the past week according to InvestingPro data, announced Monday that its subsidiary, CHS/Community Health Systems, Inc., has priced an offering of $1.79 billion aggregate principal amount of 9.750% Senior Secured Notes due 2034.

The offering size was increased by $290 million from the initial announcement. The transaction is expected to close around August 12, 2025, subject to customary closing conditions.

According to the company’s press release statement, CHS plans to use the net proceeds from the notes offering, along with cash on hand, to retire all of its 5.625% Senior Secured Notes due 2027. The funds will specifically be used to purchase 2027 notes tendered in a cash tender offer announced Monday, and to redeem any remaining unpurchased principal amount of these notes on December 15, 2025.

The new notes are being offered in the United States to qualified institutional buyers under Rule 144A of the Securities Act of 1933, and to buyers outside the United States under Regulation S. The notes have not been registered under the Securities Act and cannot be offered or sold in the United States without registration or an applicable exemption.

Community Health Systems operates general acute care hospitals and outpatient facilities across the United States. The refinancing represents a significant debt restructuring for the healthcare provider, which generated $12.65 billion in revenue over the last twelve months. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this prominent healthcare sector player.

In other recent news, Community Health Systems reported its Q2 2025 earnings, which showed a narrower-than-expected loss with an EPS of -$0.05, beating the forecast of -$0.10. The company also exceeded revenue expectations, achieving $3.13 billion compared to the anticipated $3.02 billion. Additionally, Community Health Systems announced a $1.47 billion tender offer for its 5.625% Senior Secured Notes due 2027. This tender offer targets approximately $1.76 billion in outstanding notes, providing a premium of $30 per $1,000 principal amount for early tender. In a related move, the company plans to offer $1.5 billion in Senior Secured Notes due 2034, subject to market conditions. The proceeds from this offering, alongside cash on hand, will be used to refinance a portion of its existing notes through a tender offer and/or redemption. These developments are part of Community Health Systems’ ongoing financial strategies.

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