Community Health Systems, Inc. (NYSE: CYH) (the “Company”) announced today that the Company and its wholly-owned subsidiary CHS/Community Health Systems, Inc. have received commitments for a new $750,000,000 senior secured revolving credit facility (the “Replacement Revolver Facility”) and a new $750,000,000 incremental term loan A facility (the “Incremental Term Loan”), which are expected to close on March 6, 2012. The Replacement Revolver Facility will replace in full the existing revolving credit facility under the Company’s Credit Agreement, dated as of July 25, 2007, as amended and restated as of November 5, 2010, and February 2, 2012 (the “Credit Agreement”). The proceeds of the Incremental Term Loan will be used to repay existing term loans under the Credit Agreement.
Both the Replacement Revolver Facility and the Incremental Term Loan will have a maturity date of October 25, 2016, subject to customary acceleration events and to the repayment, extension or refinancing with longer maturity debt of substantially all of the Company’s outstanding term loans maturing July 25, 2014, and 8.875% Senior Notes due 2015. The pricing on each of the Replacement Revolver Facility and the Incremental Term Loan will initially be LIBOR plus a margin of 250 basis points, subject to adjustment based on the Company’s leverage ratio. The Incremental Term Loan will amortize at 5% in year one, 10% in years two and three, 15% in year four and 60% in year five.
Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 134 hospitals in 29 states with an aggregate of approximately 20,000 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care. In addition, through its subsidiary, Quorum Health Resources, LLC, the Company provides management and consulting services to approximately 150 independent non-affiliated general acute care hospitals located throughout the United States. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”
Statements contained in this news release regarding our credit facilities, their impact on the Company, and other events may include forward-looking statements that involve risks and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, specifically the most recent filings which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including execution of our growth, acquisition, and business strategies. These and other applicable risks are summarized under the caption “risk factors” in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to revise any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
W. Larry Cash, 615-465-7000
Executive Vice President and Chief Financial Officer
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