Community Health Completes Tender Offers For Health Management Associates

(RTTNews) - Community Health Systems, Inc. (CYH) announced the completion of the previously announced cash tender offers by its wholly owned subsidiary, Health Management Associates, Inc., for any and all of the Issuer's $400 million aggregate principal amount of 6.125% Senior Notes due 2016 and $875 million aggregate principal amount of 7.375% Senior Notes due 2020, then outstanding.

The company said as previously announced, on January 23, 2014, $370,288,000 aggregate principal amount, or approximately 92.6%, of the outstanding 2016 Notes and $854,088,000 aggregate principal amount, or approximately 97.6%, of the outstanding 2020 Notes had been validly tendered and not withdrawn and the holders thereof consented to the proposed amendments to the indentures governing the Notes set forth in an Offer to Purchase and Consent Solicitation Statement that was sent to holders of the Notes.

An additional $20,000 aggregate principal amount of the outstanding 2016 Notes were validly tendered and not withdrawn after the Consent Expiration and prior to the Expiration Time. No additional 2020 Notes were tendered after the Consent Expiration and prior to the Expiration Time. Holders who validly tendered their 2016 Notes after the Consent Expiration and prior to the Expiration Time are entitled to receive consideration equal to $1,088.13 per $1,000 principal amount of the 2016 Notes. These holders will also receive accrued and unpaid interest on the 2016 Notes up to, but not including, the payment date for such 2016 Notes accepted for purchase, which is expected to be February 7, 2014.

Substantially concurrently with the previously announced closing of the merger in which Issuer survived as a wholly owned subsidiary of CHS/Community Health Systems, Inc., a Delaware corporation and wholly owned subsidiary of the Company, which occurred on January 27, 2014, the Issuer irrevocably called for redemption all of the Notes that remain outstanding after the tender offers in accordance with the Indentures, the company said.

The company noted that prior to the completion of the redemptions, the Issuer satisfied and discharged the Indentures by depositing the redemption prices in trust in accordance with the satisfaction and discharge provisions of the Indentures. Following the redemptions, no principal amount of Notes will remain outstanding.