Medical Properties Trust provides portfolio update

Medical Properties Trust (MPW) provided updates with respect to certain hospitals currently leased to Prospect Medical as well as recent asset sales. Yale New Haven Health System has entered into a settlement agreement with Prospect and MPT under which Yale will pay $45 million to Prospect, while Prospect and MPT will release Yale of any obligation to purchase the three facilities in Connecticut that it agreed to purchase in 2022. MPT expects that the $45 million will be used to reduce the Company’s outstanding debtor-in-possession loan to Prospect. The settlement remains subject to approval of the Bankruptcy Court overseeing Prospect’s Chapter 11 case. In addition, with respect to the hospitals operated by Prospect in Connecticut, Prospect has entered into a definitive agreement with an operator to purchase two of the facilities and is in discussions with another operator to purchase the third facility. Those sales are also subject to Court approval. The $45 million settlement payment from Yale will be additive to proceeds from the sales of all three facilities