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Medical Properties closes merger of hospital operator

MedicalProperties Trust Inc. completed the of its investment in theoperations of Capella Healthcare Inc. with RegionalCare Hospital Partners Inc.,and the related prepayment of two mortgages on Capella hospital facilities.

The company used the net proceeds from the transactions toreduce its borrowings by approximately $550 million.

In announcing the deal in March, Medical Properties said it wouldreceive roughly $390 million for its equity investment and loans that were madeas part of its $900 million acquisitionof the community hospital operator in August2015. It will also receive $210 million in prepayment of twomortgage loans for hospitals in Russellville, Ark., and Lawton, Okla., thatwere also part of the acquisition.

Medical Properties Chairman, President and CEO Edward Aldagsaid in a release that the company's net debt-to-EBITDA ratio will beapproximately 5.6x after paying down its borrowings, putting the company amongthe top third of all REITs in terms of leverage.

"We will have $1.15 billion of availability under ourrevolver, very limited near term debt maturities and outstanding opportunitiesto selectively invest in hospital real estate leased to the best operators inour markets," Aldag said.