Cash

The team at Community Health Systems has done another nifty bit of business in the debt markets.

Just days after turning a planned $750 million sale of eight-year notes into nearly $1.8 billion, the Franklin-based company on Tuesday said it had priced an offering of nearly $1.1 billion in 10-year debt to pay 4.75 percent in interest. The new money will be used to redeem the company’s 2024 senior secured notes that are paying 8.625 percent.

CHS shares (Ticker: CYH) fell about 1 percent in regular trading Wednesday and gave up another 4 percent after hours to end the day at $10.35. They are still up from about $4 six months ago.

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The leaders of Surgery Partners have filed papers to sell 6 million shares, a move that could bring the Brentwood-based company about $170 million.

Surgery Partners executives have given underwriters JPMorgan Securities, Jefferies, Barclays Capital, KKR Capital Markets and Macquarie Capital the option to add another 900,000 shares to the offering. All proceeds will go toward the catch-all category of “general corporate purposes.”

CEO Eric Evans and his team last year raised hundreds of millions of dollars in short order to ride out the shockwaves of COVID-19. Since then, the company’s business had steadily strengthened to the point that same-facility revenues were down only 3.1 percent through the first nine months of 2020.

Shares of Surgery Partners (Ticker: SGRY) have given up some ground in the wake of the company’s announcement, made shortly after the stock closed at $31.30. They rose more than 4 percent during Wednesday’s regular session but gave up that ground after hours, falling to $29.11.

This post originally appeared in our partner publication, the Nashville Post

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