Franklin, Tenn.-based Community Health Systems has hired Citigroup Global Markets, Credit Suisse Securities, JPMorgan Chase, and Lazard Freres & Co. as financial advisers, according to a recent Securities and Exchange Commission filing.
Here are four things to know.
1. CHS said it retained the financial advisers to assist the company in exploring refinancing options for its capital structure.
2. CHS' March 15 filing with the SEC came two days after Reorg Research reported CHS retained Lazard as a restructuring adviser. CHS shares tumbled 9.8 percent March 13 after the Reorg Research report was released. CHS shares dropped another 1.34 percent March 14, closing the day at $4.43 per share.
3. CHS ended the fourth quarter of 2017 with a net loss of $2 billion on $3.1 billion in revenues. That's compared to the same period of 2016, when the company reported a net loss of $220 million on revenues of $4.5 billion.
4. To improve its finances and reduce its heavy debt load, CHS put a turnaround plan into place in 2016. As part of the initiative, the company announced plans in 2017 to sell off 30 hospitals. CHS completed the divestiture plan Nov. 1. With the help of proceeds from the hospital sales, CHS brought down its long-term debt load from $14.8 billion at the end of 2016 to $13.9 billion at the end of last year. To further reduce its debt, CHS plans to sell another group of hospitals with combined revenue of $2 billion.
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