Community Health Systems Launches Credit Facility Financing For HMA Acquisition

(RTTNews) - Community Health Systems, Inc. (CYH) announced that the company and its wholly-owned subsidiary CHS/Community Health Systems, Inc. are launching a credit facility financing in connection with the previously announced acquisition of Health Management Associates Inc. (HMA).

The company noted that the new credit facility financing includes a new Revolving Credit Facility of $1.0 billion which will replace the Company's existing revolving credit facility and mature in 2019, a new Term Loan A Facility of $1.0 billion which will replace the Company's existing Term Loan A Facility and mature in 2019, an extension of the maturity of certain existing extended term loans maturing in 2017 to 2021, and a new $2.26 billion Term Loan D Facility that will mature in 2021.

Proceeds from a portion of the new Term Loan A Facility and the Term Loan D Facility are expected to be applied to finance the acquisition of HMA and refinance existing indebtedness.

In addition, the company said it is seeking the consent of lenders to amend its existing senior secured credit agreement to add flexibility commensurate with the post-acquisition structure of the Company. The committed financing for the acquisition of HMA previously announced is not conditioned on obtaining the amendment.

Health Management agreed on July 30 to be acquired by Community Health Systems in a cash and stock deal valued at about $7.6 billion, including the assumption of about $3.7 billion of indebtedness.