Medical Properties Trust To Sell Its Equity Investment In Ernest Health

(RTTNews) - Medical Properties Trust, Inc. (MPW) announced definitive agreements with affiliates of One Equity Partners to sell its interest in Ernest Health, Inc. Certain members of Ernest management also agreed to sell the remaining Ernest interests to One Equity Partners. Upon closing, MPT expects its portion of proceeds to be $175 million and to generate an approximate 13% unlevered internal rate of return on its original $96 million investment. The company will use the proceeds to reduce borrowings under its revolving credit facility.

As part of the agreements, MPT has granted Ernest an option to prepay the mortgage debt without penalty, and Ernest has granted to MPT certain preferential rights to future real estate acquisitions.