Community Health Taps Into Junk-Bond Frenzy to Tame Debt
Bloomberg 1/19/2021 Paula Seligson
(Bloomberg) Community Health Systems Inc., the debt-laden hospital chain that’s been staging a comeback, has more than doubled the size of a bond offering as it takes advantage of some of the lowest yields ever for speculative-grade issuers.
After strong recent earnings results, the company is using the momentum to refinance a high coupon and push out maturities.
Community is selling a $1.8 billion high-yield bond maturing in 2029 and announced a related tender offer Tuesday. The bond offering’s size was increased from $750 million due to strong demand from investors.