MedEquities Realty Trust Completes $163.9 Million Common Stock Offering And $119 Million Of Investments

NASHVILLE, Tenn., Aug. 28, 2014 /PRNewswire/ -- MedEquities Realty Trust, Inc., a newly formed, self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments, announced today that during July and August 2014 it completed an initial private placement of $163.9 million of its common stock.  Net proceeds to MedEquities, after purchase/placement agent discounts and fees and certain offering expenses, were approximately $151.6 million. 

Additionally, the Company announced that on August 1^st it closed on five acquisition and loan transactions totaling $119.0 million with Vibra Healthcare and Fundamental Healthcare.

The investments with Vibra Healthcare, an operator of over 50 freestanding facilities in 18 states, consist of:

• the purchase and leaseback of a 60-bed long-term acute care hospital in Kentfield, California for $51 million. The lease term is for 15 years with renewal options at an annual rate of 8.75% plus annual fixed escalators;
• a five-year $10 million interest-only loan secured by a first mortgage on the Vibra Hospital of Western Massachusetts located in Springfield, Massachusetts at an interest rate of 9.0%; and
• a five-year $18 million interest-only loan secured by a first mortgage on the Vibra Rehabilitation Hospital of Amarillo in Amarillo, Texas at an interest rate of 9.0% with an option after one year to purchase the property for up to $30 million.

The investments with Fundamental Healthcare, an operator of 78 facilities in nine states, consist of:

• the purchase and leaseback of a 39-bed long-term acute care hospital in Henderson, Nevada for $20 million. The lease term is for 15 years with renewal options at an annual rate of 8.55% plus annual fixed escalators; and
• the purchase and leaseback of an 88-bed (currently under expansion to 120-bed) skilled nursing facility in Spartanburg, South Carolina for $20 million. The lease term is for 12 years with renewal options at an annual rate of 9.0% plus annual fixed escalators. 

Commenting on the announcement, John McRoberts, Chairman and Chief Executive Officer of MedEquities, said, "With the long-term relationships we have established in the healthcare industry, we have been able to quickly source and fund attractive new growth opportunities with strong operators such as Vibra Healthcare and Fundamental Healthcare. We look forward to working with these and other healthcare services companies to help meet their growing capital needs."  

The shares of common stock issued in the private placement have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the common stock.

About MedEquities Realty Trust

MedEquities Realty Trust is a newly formed, self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company's management team has extensive industry experience in acquiring, owning, developing, financing, operating, leasing and monetizing many types of healthcare properties and portfolios. MedEquities' strategy is to become an integral capital partner with high-quality and growth-oriented facility-based providers of healthcare services on a nationwide basis, primarily through net-leased real estate investments.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements provide our current expectations or forecasts of future events and are not statements of historical fact. These forward-looking statements include information about possible or assumed future events, including, among other things, our strategic plans and objectives, cost management, potential property acquisitions, anticipated capital expenditures (and access to capital), amounts of anticipated cash distributions to our stockholders in the future and other matters. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of these words and other similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and/or could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Forward-looking statements involve inherent uncertainty and may ultimately prove to be incorrect or false. You are cautioned to not place undue reliance on forward-looking statements. Except as otherwise may be required by law, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or actual operating results.

Logo - http://photos.prnewswire.com/prnh/20140828/140812

SOURCE MedEquities Realty Trust