RegionalCare/Capella plan financing via five banks for merger

By Sara Rosenberg

New York, March 22 – RCCH Health Partners (RegionalCare Capella Healthcare) plans on getting new financing to help fund its creation through the merger of RegionalCare Hospital Partners Inc. and Capella Healthcare Inc., according to a news release.

Barclays, Royal Bank of Canada, Deutsche Bank, Credit Suisse and UBS are the leads on the financing.

Additionally, senior unsecured notes will be privately placed with PSP Investments Credit USA LLC and other investors.

Closing is expected in the second quarter, subject to regulatory reviews and approvals.

RegionalCare, owned by Apollo Global Management LLC, is a Brentwood, Tenn.-based owner and operator of regional acute care facilities. Capella, owned by Medical Properties Trust Inc., is a Franklin, Tenn.-based operator of acute care and specialty hospital facilities.

Under the agreement, Medical Properties Trust will receive about $390 million for its equity investment and loans made as part of its August 2015 transactions with Capella. In addition, Medical Properties Trust will receive $210 million in prepayment of two mortgage loans for hospitals in Russellville, Ark., and Lawton, Okla., that were also part of the August 2015 transactions.

The merged company will have 18 hospital campuses in 12 states with more than 13,000 employees, 2,000 affiliated physicians and $1.7 billion in revenues.

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