Community Health Systems (NYSE: CYH) is having an overwhelmingly strong start to the trading session this morning and for good reason. The company announced that it intends to commence offers to exchange surrounding various notes in an effort to restructure its finances. Of course, the news led to excitement among investors, sending the stock toward the top. Today, we’ll talk about:
- The news;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to CYH ahead.
CYH Announces Intent To Commence Offers
As mentioned above, Community Health Systems is having a strong start tot he trading session this morning after announcing that its wholly-owned subsidiary, CHS/Community Health Systems, Inc, intends to commence offers to exchange. These offers include:
- An offer to exchange up to $1,925 million aggregate principal amount of its new 9.875% Junior-Priority Secured Notes that are due in 2023 for any and all of its $1,925 million aggregate principal amount of outstanding 8.000% Senior Unsecured Notes due in 2019.
- An offer to exchange up to $1,200 million aggregate principal amount of its new 8.125% Junior-Priority Secured Notes due in 2024 for any and all of its $1,200 million aggregate principal amount of outstanding 7.125% Senior Unsecured Notes due in 2020.
- The maximum aggregate principal amount of New Notes issued in the Exchange Offers will not exceed $3,125 million.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that is that the news moves the market. In the case of Community Health Systems, the news proved to be overwhelmingly positive. If all goes well, the new offers will greatly strengthen the company’s financial position. So, it’s no surprise that excited investors are pushing the stock upward in the market this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:14), CYH is trading at $5.00 per share after a gain of $1.04 per share (26.07%) thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CYH. In particular, we’re interested in finding out if the offers to exchange are accepted. Keep in mind that the current parties to these offers are under no obligation to accept them. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!