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Medical Properties Trust will purchase nine acute care hospitals from Steward Health Care System for $1.2B and invest $50M in a limited equity stake in the hospital system.
Once completed during the fourth quarter, the deal will help privately owned Steward expand nationally. The capital injection will allow Steward to start paying off corporate debt, particularly an investment from Cerberus Capital Management made to the firm six years ago, Steward announced earlier this week, CoStar reports.
Medical Properties Trust has been selling off assets and refinancing debt throughout the year, freeing up capital for a deal such as this. The firm plans to sell roughly 57 million shares of its common stock to help fund the acquisition, raising about $825M. The nine acute care hospitals have 1,768 beds within the Massachusetts market.
