Community Health Pays Up for Bonds to Tame $13 Billion Debt Load
- Hospital operator offering $1.58 billion of secured notes
- Bond proceeds to repay term loan of similar amount due 2021
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Community Health Systems Inc. paid up to sell bonds to refinance an upcoming term loan maturity as the hospital operator seeks to tame its $13 billion debt load.
The $1.6 billion of senior secured debt will be used to refinance a loan due 2021 of around the same amount, according to a statement Wednesday. The seven-year securities were sold on Thursday at 98.68 cents on the dollar to yield 8.25 percent, above the 7.875 percent to 8 percent range discussed earlier, according to a person with knowledge of the matter. The bonds can’t be bought back for three years, said the person, who asked not to be identified discussing private details.