Medical Properties invests $92.6M in 5 hospitals

Medical Properties Trust Inc. said Tuesday it has invested $92.6 million in five hospital facilities, three of which are meant to help strengthen its position in the Southern California market.

The real estate investment trust also said new term loans it has taken on will let it terminate a short-term loan, resulting in a second-quarter charge of about $3.1 million.

The company entered into a $60 million financing arrangement with affiliates of Prime Healthcare Services Inc., related to three Southern California hospital campuses Prime recently acquired from Tenet Healthcare Corp. The financing is expected to be converted into a sale-leaseback arrangement within 30 days.

Medical Properties also completed a $32.6 million purchase of two inpatient rehabilitation hospitals leased to HealthSouth Corp.

The investments were financed with proceeds from the company's $220 million credit facility along with proceeds from a $30 million term loan.

Shares of Medical Properties rose 75 cents, or 7.4 percent, to close at $10.85.