Applies Net Proceeds of $550 Million to Strengthen Balance Sheet
BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 2, 2016--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160502005402/en/
Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director
– Investor Relations
tberryman@medicalpropertiestrust.com