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Medical Facilities Corporation Announces Sale of Interest in Unity Medical and Surgical Hospital
Medical Facilities Corporation Announces Sale of Interest in Unity Medical and Surgical Ho...
About this update from Medical Facilities Corporation
[{"type":"text","content":"\n\n\n\nMedical Facilities Corporation Announces Sale of Interest in Unity Medical and Surgical Hospital\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Feb. 26, 2020\n\n\n\nAgreement also in place to sell interest in underlying real estate\n TORONTO, Feb. 26, 2020 /CNW/ - Medical Facilities Corporation (\"Medical Facilities,\" \"MFC\" or the \"Corporation\") (TSX: DR) announced today that it has sold the majority of its interest in Unity Medical and Surgical Hospital (\"UMASH\") to a group of local investors (the \"Buyers\"), including leading physicians affiliated with South Bend Orthopaedics, The South Bend Clinic, and Allied Physicians of Michiana. \n\"After actively pursuing various strategic alternatives, our plan to improve UMASH has come together,\" said Robert Horrar, President and CEO of Medical Facilities. \"By partnering with three of the premiere physician groups in the area, we are taking an important step in enhancing the long-term strength of both UMASH and the Corporation, as the transaction should significantly improve facility utilization and financial performance.\" \nMedical Facilities no longer has a controlling interest in UMASH, with the Corporation's ownership interest decreasing to 31.7% from 87.6%. As a result, Medical Facilities will no longer consolidate UMASH's financial and operating results in the Corporation's consolidated financial statements. Going forward, Medical Facilities will account for its interest in UMASH under the equity method of accounting. \nMedical Facilities received $1.1 million in cash consideration for its equity interests, subject to customary adjustments, which implies an equity value for UMASH of $2.0 million, and enterprise value $23.1 million. In connection with the transaction, UMASH's debt obligation to MFC was reduced by $3 million, with the remaining $20.0 million being structured on a five-year term secured by, among other things, the Buyers' equity in UMASH. The Buyers have options to acquire more of Medical Facilities' equity interest in UMAS...