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Community Health Systems, Inc. Announces Early Tender Offer And Consent Solicitation Results For 8 7/8% Senior Notes Due 2015

Stocks in this article: CYH

Community Health Systems, Inc. (the “Company”) (NYSE: CYH) today announced the early tender results of the previously announced cash tender offer by its wholly-owned subsidiary, CHS/Community Health Systems, Inc. (the “Issuer”), for any and all of the Issuer’s approximately $934 million aggregate principal amount of 8⅞% Senior Notes due 2015 (CUSIP Nos. 12543DAD2/12543DAF7) (the “Notes”), as of 5:00 p.m., New York City time, July 17, 2012 (the “Consent Expiration” or “Withdrawal Time”), as well as the results of the previously announced consent solicitation with respect to the Notes, which expired at the Consent Expiration.

As of the previously announced Consent Expiration, $639,705,000 aggregate principal amount, or approximately 68.5 percent, of the outstanding Notes have been validly tendered and not withdrawn, and the holders thereof have consented to the proposed amendments to the indenture governing the Notes (the “Indenture”) set forth in an Offer to Purchase and Consent Solicitation Statement (the “Offer to Purchase”), that was sent to holders of the Notes. Having received the requisite consents from the holders of Notes in connection with the consent solicitation, the Company intends to execute a supplemental indenture (the “Supplemental Indenture”) with respect to the Indenture, which will eliminate most of the restrictive covenants, certain events of default applicable to the Notes and certain other provisions in the Indenture. The amendments contemplated by the Supplemental Indenture will not become operative until a majority in aggregate principal amount of the Notes has been purchased by the Company pursuant to the terms of the tender offer, which is expected to occur today.

The following table sets forth the outstanding principal amount of Notes, the principal amount that had been tendered and not withdrawn as of the Withdrawal Time and the principal amount accepted for purchase:

Title of Security     CUSIP Numbers     Principal Amount Outstanding    

Aggregate Principal Amount Tendered and Not Withdrawn


Aggregate Principal Amount Accepted for Purchase

8⅞% Senior Notesdue 2015     12543DAD2/12543DAF7     $934,331,000     $639,705,000     $639,705,000

Holders who validly tendered (and did not subsequently withdraw) their Notes prior to the Consent Expiration will receive “Total Consideration” of $1,026.00 per $1,000 principal amount of the Notes, which includes a consent payment of $20.00 per $1,000 principal amount of the Notes. Holders will also receive accrued and unpaid interest from the last interest payment on the applicable Notes up to, but not including, the payment date for such Notes accepted for purchase.

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