Community Health Systems to offer $1.5 billion in senior secured notes

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), currently trading at $2.77 and showing strong free cash flow yield according to InvestingPro data, announced Monday that its wholly owned subsidiary, CHS/Community Health Systems, Inc., plans to offer $1.5 billion in Senior Secured Notes due 2034, subject to market conditions.

The company intends to use the proceeds from the notes offering, along with cash on hand, to refinance a portion of its outstanding 5.625% Senior Secured Notes due 2027 through a tender offer and/or redemption. The refinancing comes as the company manages its total debt of $11.5 billion while maintaining a current ratio of 1.59.

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

The offering will be made only through a private offering memorandum, according to the company’s press release statement.

Community Health Systems operates 71 affiliated hospitals across 15 states, providing healthcare services through its subsidiaries. As a prominent player in the Healthcare Providers & Services industry, the company generates annual revenue of $12.65 billion. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top US stocks.

In other recent news, Community Health Systems reported its second-quarter 2025 earnings, which showed a narrower-than-expected loss. The company posted an earnings per share (EPS) of -$0.05, beating the forecasted -$0.10. Revenue also exceeded expectations, coming in at $3.13 billion compared to the anticipated $3.02 billion. These results highlight the company’s ability to surpass analyst estimates in both earnings and revenue. Despite these positive financial results, the company continues to face broader challenges. Analyst firms have not issued any recent upgrades or downgrades following the earnings report. Investors remain focused on the company’s ongoing performance and strategic direction amid these developments.

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