Franklin, Tenn.-based Community Health Systems has increased the size of a bond offering by more than $1 billion due to a strong demand from investors.
CHS will now sell a $1.78 billion high-yield bond. This was raised from $750 million offered earlier in the day Jan. 19.
The bonds are 6.88 percent junior-priority secured notes due in 2029. The proceeds from the bonds will be used to pay back $1.77 billion of 9.88 percent junior-priority secured notes that matured in 2023, according to the company's news release.
According to Bloomberg, the debt-laden hospital chain is taking advantage of some of the lowest yields ever for a "CCC"-rated company.
So far in January, given the low yields, there have been more than $22 billion in deals announced for junk bonds.
Fitch Ratings assigned a "CC"/"RR6" rating to CHS' junior priority secured notes due in 2029.