Community Health Systems executives have told the leaders of Bert Fish Medical Center in Northeast Florida that they cannot follow through on the acquisition talks started last summer by Health Management Associates. Officials at nonprofit Bert Fish chose HMA as their preferred partner shortly before CHS said it would pay more than $7 billion for HMA.
Days after Community Health Systems put a bow on its multibillion-dollar acquisition of Health Management Associates, hedge fund manager Larry Robbins has tallied up his holdings in the combined company. Robbins' Glenview Capital Management, which last year played a big role in driving HMA to the auction block, now owns 10.7 percent of CHS, which should make it the company's largest shareholder by a comfortable margin. CHS shares (Ticker: CYH) were up slightly to $40.60 in early Friday trading.
Krista Giovacco at Bloomberg has an update on the state of Community Health Systems' dealings with much of Wall Street as it looks to wrap up its purchase of Health Management Associates. The Franklin-based company is now looking to sign the paper on a new term loan of almost $3 billion — with an interest rate 50 basis points lower than previously expected — and plans to issue less debt than under its previous plan.
Community Health Systems is bringing to market almost $4.6 billion of new senior notes, the proceeds of which will help it buy Health Management Associates. The package is larger and slightly different than the plans CHS executives outlined a few days ago. The debt — some of its secured, some not — will mature in 2021 and 2022.