Community Health Systems
The largest provider of general hospital healthcare services in the united states
Key facts
| Also Known As | Community Health Systems Inc. |
|---|---|
| Company Operating Status | Active |
| Full Address | 9380 Magnolia Ave, Riverside, CA 92503 |
| Legal Entity Identifier | 549300BQWM4WENQ3YW73 |
| Stock Symbol | CYH |
| Ticker Symbol | CYH |
| Wikidata ID | Q5154770 |
Capital structure
$1.0bn total debt
| Instrument | Coupon | Maturity | Amount | Source |
|---|---|---|---|---|
| Second Amended and Restated ABL Credit Agreement · Senior Secured (ABL Priority Collateral) | SOFR + 175-225 bps (Term Benchmark) or ABR + 75-125 bps dependin | Jun 2029 | USD 1.0bn | source ↗ |
Covenant analysis
| Covenant | Term | vs market | Source |
|---|---|---|---|
| Indebtedness – General Basket · Debt Incurrence | Other Indebtedness not to exceed $1,100,000,000 at any time outstanding | loose $1.1bn vs basket median $300m (n=49) | source ↗ |
| Liens – Non-Collateral Other Lien Cap · Negative Pledge | Other Liens on assets not constituting Collateral shall not secure obligations in excess of $300,000,000 in aggregate | source ↗ | |
| Restricted Payments – Payment Conditions Basket · Restricted Payments | Permitted if Payment Conditions are satisfied at the time of payment | source ↗ | |
| Loan Proceeds for Senior Debt Repayment – Excess Availability Test · Debt Repurchase | Loan proceeds may only be used for senior secured/unsecured debt repayment if (x) Excess Availability spot and 30-day average each exceed greater of $145M and 15.0% of Line Cap AND FCCR ≥ 1.00x, or (y) Excess Availability spot and 30-day average each exceed greater of $195M and 20.0% of Line Cap | source ↗ | |
| Investments in Non-Loan Party Subsidiaries / Unrestricted Subsidiaries Cap · Investment Restriction | Aggregate outstanding investments by Loan Parties in non-Loan Party Subsidiaries and Unrestricted Subsidiaries shall not exceed $500,000,000 plus cash returns of capital | source ↗ | |
| Permitted Acquisition – Aggregate Foreign/Non-Loan Party Cap · Acquisition | Aggregate consideration for acquisitions of Acquired Entities that become Foreign Subsidiaries shall not exceed $300,000,000 | source ↗ | |
| Practice Guarantees Cap · Negative Covenant | Practice Guarantees with term of 30 months or longer shall not exceed $300,000,000 aggregate at any time | tight $30m vs negative covenant median $137.5m (n=56) | source ↗ |
| Applicable Percentage (Margin) · Pricing | Category 1 (>66.66% Avg Excess Avail): SOFR/RFR +1.75%, ABR +0.75%; Category 2 (33.33%-66.66%): SOFR/RFR +2.00%, ABR +1.00%; Category 3 (≤33.33%): SOFR/RFR +2.25%, ABR +1.25% | loose 66.66% vs pricing median 1.375% (n=38) | source ↗ |
| Restricted Payments – General Cash Basket · Restricted Payments | Aggregate from Restatement Date not to exceed $300,000,000 less amounts used for subordinated debt repurchases under Section 6.09(b)(i) | market $300m vs basket median $300m (n=49) | source ↗ |
| Restricted Payments – Annual Basket · Restricted Payments | Not to exceed $25,000,000 in any fiscal year | tight $25m vs basket median $300m (n=49) | source ↗ |
| General Investment Basket · Investment Restriction | Additional investments, loans and advances not to exceed $200,000,000 plus cash returns of capital | market $200m vs basket median $300m (n=49) | source ↗ |
| Restricted Payments – Employee Equity Repurchase Cap · Restricted Payments | Not to exceed $90,000,000 in any fiscal year for repurchases from employees/directors/consultants | tight $90m vs basket median $300m (n=49) | source ↗ |
| Subordinated Debt Repurchase Cap · Restricted Payments / Debt Repurchase | From Restatement Date, aggregate price not in excess of $300,000,000 less Restricted Payments made under Section 6.06(a)(v) | market $300m vs basket median $300m (n=49) | source ↗ |
| Consolidated Fixed Charge Coverage Ratio (Maintenance) · Financial Maintenance | Minimum 1.00x, tested only when a Covenant Trigger Event exists | loose 1x vs coverage median 1.7x (n=40) | source ↗ |
| Indebtedness – Letters of Credit (other than under Agreement) Cap · Debt Incurrence | Aggregate face amount not to exceed $100,000,000 | tight $100m vs debt incurrence median $875m (n=7) | source ↗ |
| Indebtedness – Capital Expenditure / Capital Lease Cap · Debt Incurrence | Combined cap of $875,000,000 for acquisition/construction/improvement Indebtedness (Section 6.01(d)) and Capital Lease / Synthetic Lease Obligations (Section 6.01(e)) | market $875m vs debt incurrence median $875m (n=7) | source ↗ |
| Indebtedness – Foreign Subsidiary Cap · Debt Incurrence | $75,000,000 aggregate outstanding at any time | tight $75m vs debt incurrence median $875m (n=7) | source ↗ |
| L/C Exposure Cap · Structural | L/C Exposure shall not exceed $200,000,000 | market $200m vs structural median $375m (n=29) | source ↗ |
| Maximum Total Revolving Credit Commitment · Structural | $1,000,000,000 as of Restatement Date | loose $1bn vs structural median $375m (n=29) | source ↗ |
| Revolving Credit Commitment Increase Cap · Structural | Aggregate incremental increases not to exceed $200,000,000 | market $200m vs structural median $375m (n=29) | source ↗ |
| Protective Advance Cap · Structural | Outstanding Protective Advances shall not exceed the lesser of $50,000,000 and 5.0% of the Line Cap | loose 5% vs structural median 1.25% (n=13) | source ↗ |
Contact details
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