Medical Properties To Sell Connecticut Hospitals To Prospect Medical Holdings

(RTTNews) - Medical Properties Trust, Inc. (MPW) announced Thursday that it has entered into definitive agreements for the sale of three Connecticut hospitals to Prospect Medical Holdings, the current lessee.

Separately, Yale New Haven Health 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 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.