Community Health Systems, Inc. (the “Company”) (NYSE: CYH), announced today that on March 7, 2012, its wholly-owned subsidiary, CHS/Community Health Systems, Inc. (the “Issuer”), priced an offering of $1.0 billion aggregate principal amount 8.00% senior notes due 2019 at an issue price of approximately 102.5% (the “New Notes”). The size of the offering was increased by $250 million aggregate principal amount of New Notes subsequent to the initial announcement of the proposed offering. The New Notes will be senior obligations of the Issuer and will be guaranteed on a senior basis by the Company and by certain of the Issuer’s and the Company’s domestic subsidiaries.
The sale of the New Notes is expected to be consummated on or about March 21, 2012, subject to customary closing conditions. The Company intends to use the net proceeds of the offering to finance the purchase of up to $850 million of the Issuer’s approximately $1,784 million outstanding aggregate principal amount of 8⅞% Senior Notes due 2015, to pay related fees and expenses and for general corporate purposes.
The New Notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This press release is neither an offer to sell nor the solicitation of an offer to buy the New Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. Any offers of the New Notes will be made only by means of a private offering memorandum.
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