CHS ups secured notes offering by $1B, tapping into junk-bond frenzy

Franklin, Tenn.-based Community Health Systems has increased the size of a bond offering by more than $1 billion due to a strong demand from investors. 

CHS will now sell a $1.78 billion high-yield bond. This was raised from $750 million offered earlier in the day Jan. 19. 

The bonds are 6.88 percent junior-priority secured notes due in 2029. The proceeds from the bonds will be used to pay back $1.77 billion of 9.88 percent junior-priority secured notes that matured in 2023, according to the company's news release. 

According to Bloomberg, the debt-laden hospital chain is taking advantage of some of the lowest yields ever for a "CCC"-rated company. 

So far in January, given the low yields, there have been more than $22 billion in deals announced for junk bonds.

Fitch Ratings assigned a "CC"/"RR6" rating to CHS' junior priority secured notes due in 2029.

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