J.P. Morgan and Bank of America are in the market with a $1.55 billion refinancing for Community Health Systems. The credit is made up of a five-year, $350 million revolver and seven-year, $1.2 billion "B" loan. Price talk is LIBOR plus 1 3/4% on both tranches.
The spread is being cut by 50 basis points on the revolver and 75 bps on the term loan. In addition to the change in interest rate, the "B" loan is being increased from $1.03 billion, a loan investor noted. Syndication for the refinancing kicked off last Wednesday.
The company operates general acute care hospitals in non-urban markets and has 73 hospitals in 22 states. A J.P. Morgan spokesman declined comment and a B of A spokeswoman did not return calls. A Community Health spokeswoman could not be reached by press time.