The for-profit hospital operator said it will use the net proceeds to refinance existing senior secured notes and secured term loans.
Fitch Ratings assigned a “BB/RR1” rating to CHS’ $1.75 billion senior secured notes. The rating outlook is negative. Fitch said the negative outlook reflects CHS’ high leverage, weak operating performance since the acquisition of Naples, Fla.-based Health Management Associates in 2014 and risk surrounding the execution of CHS’ divestiture and business repositioning plan in some of the company’s markets.
CHS ended 2016 with a net loss of $1.7 billion, compared with net income of $158 million in 2015. The company put a turnaround plan into place last year to improve its finances. To trim its debt load, CHS is selling 25 hospitals.
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