BIRMINGHAM, AL– Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced that it has entered into definitive agreements for the sale of three Connecticut hospitals to Prospect Medical Holdings (“Prospect”), the current lessee. Separately, Yale New Haven Health (“Yale”) has agreed to acquire the hospital operations from Prospect in a contemporaneous transaction.
Terms of the agreements establish an aggregate sale price of approximately $457 million, the approximate amount MPT paid for the hospitals in August 2019; the Prospect lessees have since made timely payments of all rent required under the leases to MPT totaling approximately $104 million. The strong interest of Yale in the Connecticut facilities further validates MPT’s underwriting of these properties as essential hospital infrastructure due to their physical quality, local demographics, reimbursement sources and other key underwriting criteria. The transaction is expected to close in 2023 subject to certain regulatory approvals and is further conditioned upon the completion of Yale’s acquisition from Prospect of the hospital operations.
MPT presently plans to utilize proceeds from the transaction to reduce debt and to fund select acquisition and other investment opportunities. In combination with nearly $400 million in recent asset sale and loan repayment proceeds, which the Company used to reduce short-term debt during the third quarter, and roughly $200 million in anticipated loan repayment proceeds related to LifePoint’s planned acquisition of a majority interest in Springstone, MPT will have sourced in excess of $1 billion of immediately available liquidity.
