- Medical Properties Trust (NYSE:MPW -1.0%) agrees to buy 18 in-patient behavioral health hospital facilities and an interest in Springstone LLC from Welsh, Carson, Anderson & Stowe for $950M then lease the facilities back to Springstone.
- The deal will expand MPW's presence in the behavioral healthcare market as demand for such services increases. Springstone operates in-patient facilities in select markets and across the full behavioral care acuity spectrum.
- The hospitals, along with additional facilities that Springstone expects to develop and acquire, are expected to be master-leased on terms providing a GAAP-basis yield exceeding 9.0% and lease payment coverage of ~1.75x in the near-term. The lease is expected to include an initial 20-year term with CPI-based annual rent escalators subject to a 2% floor.
- Expects the deal to close in H2 2021.
- MPW expects to initially fund the acquisition with cash on hand, borrowings under its revolving credit facility, and additional financing arrangements, which may include debt and equity securities, new secured loans on the acquired real estate or some combination thereof.
- Sees deal achieving immediate improvement in EPS and FFO.
- In January, MPW agreed to acquired a portfolio of health facilities in the U.K. for ~ £800M
Medical Properties Trust builds behavioral health position with $950M deal
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Symbol | Last Price | % Chg |
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MPW | - | - |
Medical Properties Trust, Inc. |