Mar 22, 201606:16 PMBlog
Capital Medical Center operator enters merger
There is a bit of shuffling happening with the operator of Capital Medical Center in Olympia, though its future sale still remains imminent.
Medical Properties Trust (MPT) in Birmingham Alabama has entered into definitive agreement, merging its investment in Capella Healthcare with RegionalCare Hospital Partners. The two Tennessee companies announced a merger today, creating a portfolio that encompasses about a dozen states and "one of the largest healthcare operating companies in the United States.”
MPT, currently going through the regulatory rigamarole to buy Capital Medical Center from Capella, will retain $100 million loan for the Olympia property, which is expected to be converted into a sale and leaseback arrangement. According to the press release, the combined Capella/RegionalCare have aggressive growth plans for its facilities and will remain the operator of Capital Medical Center.
It will receive approximately $610 million from Regional Healthcare for other investments made in Capella. By the time the transaction is done, which includes investing up to $50 million in unsecured notes to be issued by RegionalCare, the net proceeds of approximately $550 million will be used to reduce MPT’s debt.