- Community Health Systems, Inc. (CYH, Financial) initiates a cash tender offer for its 6.875% Senior Unsecured Notes due 2028.
- The tender offer includes a total consideration of $750 per $1,000 principal amount for early tenders.
- A major investment manager has committed to tendering its notes, aiding the consent solicitation process.
Community Health Systems, Inc. (CYH), through its wholly owned subsidiary, has commenced a cash tender offer for the outstanding 6.875% Senior Unsecured Notes due 2028. Holders of these notes have been provided with terms through the Offer to Purchase, effective April 23, 2025.
The tender offer is structured to pay $700 per $1,000 principal amount tendered, with an additional $50 early tender payment, bringing the total consideration to $750. To qualify for the early tender payment, notes must be tendered before 5:00 PM EDT on May 6, 2025. The tender offer itself is set to expire on May 21, 2025, at 5:00 PM EDT.
In conjunction with the tender offer, the company is seeking consents from noteholders for proposed amendments that would relax many of the covenants in the current notes indenture. Consents must accompany tendered notes, and failure to meet the required threshold will keep the current terms intact.
Importantly, a majority stakeholder in the notes has committed to participate, ensuring that the tender offer and consent solicitation proceed smoothly. If successful, these amendments will be binding even on those who do not tender.
The cash tender offer will be funded through existing cash reserves. Citigroup Global Markets Inc. is serving as the dealer manager for the tender offer and the solicitation agent for the consent process, providing guidance via direct contact for interested parties.
