Medical Properties Trust Completes Capella Transactions
May 02 2016 - 8:30AM
Business Wire
Applies Net Proceeds of $550 Million to
Strengthen Balance Sheet
Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE:
MPW) today announced that it has completed the previously announced
merger of the Company’s investment in the operations of Capella
Healthcare, Inc. and RegionalCare Hospital Partners, Inc., and the
related prepayment of two mortgages on Capella hospital facilities.
Net proceeds from the transactions were used to reduce the
Company’s borrowings by approximately $550 million.
“This transaction creates a stronger, well-capitalized tenant
for MPT while at the same time significantly improves our balance
sheet,” said Edward K. Aldag, Jr., Chairman, President and CEO of
Medical Properties Trust. “We have always focused on leasing to the
best tenants and positioning our balance sheet with best-in-sector
strength and flexibility to minimize risk for our investors and be
poised to take advantage of opportunities,” continued Aldag.
“After paying down our debt with $550 million of proceeds from
these transactions, our net debt to EBITDA of approximately 5.6
times will be among the top third of all REITs. We will have $1.15
billion of availability under our revolver, very limited near term
debt maturities and outstanding opportunities to selectively invest
in hospital real estate leased to the best operators in our
markets. It is a great time to be as well positioned for accretive
growth as we now are,” concluded Aldag.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate
investment trust formed to capitalize on the changing trends in
healthcare delivery by acquiring and developing net-leased
healthcare facilities. MPT’s financing model allows hospitals and
other healthcare facilities to unlock the value of their underlying
real estate in order to fund facility improvements, technology
upgrades, staff additions and new construction. Facilities include
acute care hospitals, inpatient rehabilitation hospitals, long-term
acute care hospitals, and other medical and surgical facilities.
For more information, please visit the Company’s website at
www.medicalpropertiestrust.com.
The statements in this press release that are forward looking
are based on current expectations and actual results or future
events may differ materially. Words such as "expects," "believes,"
"anticipates," "intends," "will," "should” and variations of such
words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the actual results of the Company or future events to differ
materially from those expressed in or underlying such
forward-looking statements, including without limitation: the
satisfaction of all conditions to, and the timely closing (if at
all) of pending transactions; Normalized FFO per share; projected
leverage metrics; the amount of net proceeds available for debt
repayment; the amount of acquisitions of healthcare real estate, if
any; results from the potential sales, if any, of assets; capital
markets conditions; the repayment of debt arrangements; statements
concerning the additional income to the Company as a result of
ownership interests in certain hospital operations and the timing
of such income; the payment of future dividends, if any; completion
of additional debt arrangements, and additional investments;
national and international economic, business, real estate and
other market conditions; the competitive environment in which the
Company operates; the execution of the Company's business plan;
financing risks; the Company's ability to maintain its status as a
REIT for federal income tax purposes; acquisition and development
risks; potential environmental and other liabilities; and other
factors affecting the real estate industry generally or healthcare
real estate in particular. For further discussion of the factors
that could affect outcomes, please refer to the "Risk factors"
section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2015. Except as otherwise required by the
federal securities laws, the Company undertakes no obligation to
update the information in this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20160502005402/en/
Medical Properties Trust, Inc.Tim Berryman, 205-969-3755Director
– Investor Relationstberryman@medicalpropertiestrust.com
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