Community Health Systems, Inc. announced that its wholly-owned subsidiary, FWCT-2 Escrow Corp. , intends to offer $1.705 billion aggregate principal amount of Senior Secured Notes due 2021 and $2.875 billion of Senior Notes due 2022, subject to market and other conditions. This offering is part of the financing for the proposed acquisition of Health Management Associates, Inc. by the Company. According to a release, upon consummation of the Merger, the Escrow Issuer will merge with and into CHS/Community Health Systems, Inc. , a wholly-owned subsidiary of the Company, and the Issuer will assume the obligations of the Escrow Issuer under the New Notes, the related indentures and the other applicable documents by operation of law. Upon consummation of the Escrow Merger, the Unsecured Notes will be senior unsecured obligations of the Issuer and will be guaranteed on a senior basis by the Company and by certain of the Issuer's and the Company's domestic subsidiaries and the Secured Notes will be senior secured obligations of the Issuer and will be guaranteed on a senior secured basis by the Company and by certain of the Company's domestic subsidiaries. The Company intends to use the net proceeds of the offering, together with new borrowings under the Company's senior secured credit facilities, to fund the cash consideration for the Merger and the transactions related thereto, to pay fees and expenses and for general corporate purposes. ((Comments on this story may be sent to email@example.com ))
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