COMMUNITY HEALTH SYSTEMS, INC. (NYSE:CYH) Files An 8-K Entry into a Material Definitive Agreement
Item1.01.
| Entry into a Material Definitive Agreement. |
On May30, 2017, Community Health Systems, Inc. (the Company) and
its wholly-owned subsidiary CHS/Community Health Systems, Inc.
(the Borrower) entered into a Loan Modification Agreement (the
Agreement), among the Company, the Borrower, the subsidiary
guarantors party thereto, the lenders party thereto and Credit
Suisse AG, as administrative agent and collateral agent (the
Agent), to the Credit Agreement dated as of July25, 2007, as
amended and restated as of November5, 2010,February2, 2012 and
January27, 2014, and as further amended as of March9, 2015,May18,
2015 and December5, 2016 (as the same may be further amended,
restated, amended and restated, supplemented or otherwise
modified from time to time, the Credit Agreement) among the
Company, the Borrower, the subsidiaries of the Borrower party
thereto, the lenders party thereto, and the Agent.
to the Agreement, the scheduled termination date of the Borrowers
existing $1.0 billion revolving credit facility was extended from
January27, 2019 to January27, 2021 in respect of a $739 million
portion of the commitments thereunder and the aggregate
commitments of the extending lenders were reduced to $739
million.
to the Agreement, certain specified financial covenants
(consisting of a maximum secured net leverage ratio and an
interest coverage ratio) were also amended. The Agreement
provides that the secured net leverage ratio must not exceed the
following levels for the following periods: (i)from April1, 2017
through December31, 2019, 4.50 to 1.00; (ii)from January1, 2020
through September30, 2020, 4.25 to 1.00; and (iii)thereafter,
4.00 to 1.00.The Amendment also provides that the interest
coverage ratio must be greater than or equal to the following
levels for the following periods: (i)from December31, 2013
through December31, 2017, 1.75 to 1.00 and (ii)thereafter, 2.00
to 1.00.
The Amendment also contains certain additional covenants by the
Company and the Borrower, for the benefit of the Revolving Credit
Lenders.
The foregoing summary of the Agreement and the transactions
contemplated thereby does not purport to be complete and is
subject to, and qualified in its entirety by, the full text of
the Agreement, which is attached hereto as Exhibit 10.1
and incorporated herein by reference.
| Item2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth in Item1.0.1 above is incorporated
herein by reference.
| Item9.01. | Financial Statements and Exhibits. |
| (d) | Exhibit |
| 10.1 |
Loan Modification Agreement, dated as of May30, 2017, among CHS/Community Health Systems, Inc., Community Health Systems, Inc., the subsidiary guarantors party thereto, the lenders party thereto and Credit Suisse AG, as Administrative Agent and Collateral Agent. |
COMMUNITY HEALTH SYSTEMS, INC. (NYSE:CYH) Recent Trading Information
COMMUNITY HEALTH SYSTEMS, INC. (NYSE:CYH) closed its last trading session at with 1,632,893 shares trading hands.
