FRANKLIN, Tenn.--(BUSINESS WIRE)-- 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 up to $850 million of the Issuer’s approximately $1.784 billion aggregate principal amount of 8⅞% Senior Notes due 2015 (the “Notes”).
As of the previously announced early tender deadline of 12:00 midnight, New York City time, on March 20, 2012 (the “Early Tender Deadline”), $1,671,713,000 in aggregate principal amount, or approximately 93.7 percent, of the outstanding Notes have been validly tendered and not withdrawn.
As the tender offer is oversubscribed, the Issuer has accepted for purchase tendered Notes on a prorated basis in the manner described in the Issuer’s Offer to Purchase, as supplemented by the Supplement to Offer to Purchase, each dated March 7, 2012.
The following table sets forth the outstanding principal amount of Notes, the principal amount that had been tendered and not withdrawn as of the Early Tender Deadline, the principal amount accepted for purchase and the approximate proration factor:
| Title of Security | CUSIP and ISIN Numbers |
Principal Amount Outstanding |
Tender Cap | Aggregate Principal Amount Tendered and Not Withdrawn | Aggregate Principal Amount Accepted for Purchase1 | Approximate Proration Factor1 |
||||||
| 8⅞% Senior Notes due 2015 (“Notes”) |
12543DAD2 U17127AB4 12543DAF7 |
$1,784,331,000 | $850,000,000 | $1,671,713,000 | $850,000,000 | 50.8% | ||||||
(1) Reflects the results of rounding upon the terms and conditions described in the Offer to Purchase, as supplemented by the Supplement to Offer to Purchase, each dated March 7, 2012.
Payment for Notes accepted for purchase is expected to be made today, March 21, 2012. Holders who tender Notes after the Early Tender Deadline will not have any of their Notes accepted for purchase. The tender offer will expire at 5:00 p.m., New York City time, on April 4, 2012, unless extended or earlier terminated by the Issuer. The Issuer reserves the right to terminate, withdraw, or amend the tender offer at any time subject to applicable law.
The Issuer has retained Credit Suisse Securities (USA) LLC to act as Dealer Manager in connection with the tender offer. Questions about the tender offer may be directed to Credit Suisse Securities (USA) LLC at (800) 820-1653 (toll free) or (212) 538-2147 (collect). Copies of the tender offer documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offer, at (800) 488-8095 (toll free) or (212) 269-5550 (collect).
The tender offer is being made solely by means of the tender offer documents. Under no circumstances shall this press release constitute an offer to purchase or the solicitation of an offer to sell the Notes or any other securities of the Issuer or any other person, nor shall there be any offer or sale of any Notes or other securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No recommendation is made as to whether holders of the Notes should tender their Notes.
About Community Health Systems, Inc.
Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. 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 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.”
Forward-Looking Statements
Statements contained in this press release regarding the proposed transactions and other events are forward-looking statements that involve risk 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, including the Company’s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Community Health Systems, Inc.
W. Larry Cash, 615-465-7000
Executive Vice President
and Chief Financial Officer
KEYWORDS: United States North America Tennessee
INDUSTRY KEYWORDS: Health Hospitals
MEDIA:
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