Community Health Systems enters consultancy agreement with retiring CEO

Community Health Systems, Inc. (NYSE:CYH), a healthcare provider with a market capitalization of $427 million and currently considered undervalued according to InvestingPro analysis, announced Tuesday that it has entered into a consultancy agreement with Tim L. Hingtgen, its retiring Chief Executive Officer. According to a statement provided in a recent SEC filing, Hingtgen will retire as a director and executive officer of the company effective Tuesday.

Under the terms of the agreement, which was signed by CHSPSC, LLC, a wholly owned subsidiary of Community Health Systems, Hingtgen will serve as a consultant to the company’s management team. He will advise on healthcare operations, strategy, and other assignments as requested by Interim CEO Kevin J. Hammons or his designee.

The consultancy will begin October 1, 2025, and continue through September 30, 2026. During this period, Hingtgen will receive monthly consulting fees of $33,333.33. The agreement also places restrictions on Hingtgen regarding competition, solicitation, and conflicts of interest with CHSPSC, LLC or its affiliates.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Community Health Systems, Inc. completed 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. The company accepted approximately $1.74 billion in aggregate principal amount of the notes, representing about 99.2% of the outstanding notes. The tender offer consideration included a payment of $1,002.65 per $1,000 principal amount for notes tendered by the early deadline, incorporating an early tender premium of $30 per $1,000 principal amount. Additionally, Community Health Systems reported strong early tender results, with $1.74 billion of notes validly tendered, equating to approximately 98.8% of the $1.76 billion aggregate principal amount of outstanding notes.

Furthermore, 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. This transaction is expected to close around August 12, 2025, subject to customary closing conditions. The company also launched a $1.47 billion tender offer for its 5.625% Senior Secured Notes due 2027, targeting approximately $1.76 billion in outstanding notes. Holders who tendered their notes by the early deadline were eligible for the full tender consideration, including a premium of $30 per $1,000 principal amount.

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