Community Health Systems (CHS) entered into a new asset-based loan credit agreement with JPMorgan Chase as administrative agent.

According to a related 8-K filing, the new credit agreement consists of a revolving ABL facility in the maximum aggregate principal amount of $1 billion, subject to borrowing base capacity. It includes borrowing capacity available for letters of credit of $50 million. The commitments under the company’s previous credit agreement were reduced to $425 million.

Borrowings under the ABL facility will bear interest at a rate per annum equal to an applicable margin, plus, at the company’s option, either a base rate or a LIBOR rate.

Principal amounts outstanding under the facility will be due and payable in full on April 3, 2023.

In connection with the new ABL facility, CHS repaid in full and terminated its asset-backed securitization under its receivables loan agreement, dated as of March 21, 2012.

Community Health Systems is an operator of general acute care hospitals. The organization’s affiliates own, operate or lease 126 hospitals in 20 states with approximately 21,000 licensed beds.