Franklin, Tenn.-based Community Health Systems announced it has completed its offering of $1 billion of 8 percent senior notes due in 2019.
CHS plans to use the net proceeds of the sale to finance the purchase of up to $850 million of CHS' $1.78 billion in outstanding 8.875 percent senior notes due 2015, pay related fees and expenses, and use for other "general corporate purposes."
CHS also announced it has entered into an accounts receivable securitization program through March 2014. In this agreement, CHS subsidiaries will sell all existing and future accounts receivable to CHS, which will then sell or contribute those receivables to its specific limited liability company, CHS Receivables Funding.
Two banks — Credit Agricolé Corporate and Investment Bank and The Bank of Nova Scotia — will act as managing agents and will lend up to $300 million to CHS with the receivables as collateral.
CHS plans to use the net proceeds of the sale to finance the purchase of up to $850 million of CHS' $1.78 billion in outstanding 8.875 percent senior notes due 2015, pay related fees and expenses, and use for other "general corporate purposes."
CHS also announced it has entered into an accounts receivable securitization program through March 2014. In this agreement, CHS subsidiaries will sell all existing and future accounts receivable to CHS, which will then sell or contribute those receivables to its specific limited liability company, CHS Receivables Funding.
Two banks — Credit Agricolé Corporate and Investment Bank and The Bank of Nova Scotia — will act as managing agents and will lend up to $300 million to CHS with the receivables as collateral.
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