Barclays Maintains an 'Overweight' on Community Health (CYH); Perspectives on Refinancing

Barclays maintains an 'Overweight' on Community Health (NYSE: CYH) price target of $29.00.

Barclays analyst says, "CYH issued $1 billion of senior notes due November 2019 and will use the proceeds to refinance a portion of their $2.8 billion in senior notes due 2015. We believe this refinancing is good for CYH since it results in lower interest expense and also extends the company's maturities. The interest rate on the new senior notes is 8.0%, below the 8.875% the company is currently paying on its $2.8 billion in senior notes due 2015. We estimate that the refinancing will lower CYH's interest expense by $8.75 million per year and should boost EPS by $0.06 on an annualized basis."

For an analyst ratings summary and ratings history on Community Health click here. For more ratings news on Community Health click here.

Shares of Community Health closed at $21.03 yesterday.

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