Medical Properties Trust (NYSE:MPW) on Friday announced a binding agreement, pursuant to which majority of Prospect’s managed care platform will be sold to Astrana Health (NASDAQ:ASTH) for around $745M and the assumption of certain liabilities.

Astrana (ASTH) expects to fund the deal using a combination of cash on hand and a $1.09B 364-day senior secured bridge commitment provided by Truist Bank and J.P. Morgan.

The transaction remains subject to regulatory approval and other closing conditions and is expected to close in mid-2025.

Astrana (ASTH) plans to make significant investments in Prospect and its infrastructure to further enhance access and quality of care for patients in local communities. "This strategic transaction will significantly expand our provider network and enhance our ability to offer increased access, quality, and value for our members,” said Brandon K. Sim, President and CEO of Astrana.

After satisfaction of obligations to the managed care platform’s senior creditor and other liabilities, Medical Properties Trust (MPW) expects to receive around $200M in total proceeds.

The majority of this cash is expected to be received in the first half of 2025, while a $50M payment is expected by 2027.

Medical Properties Trust (MPW) acquired 16 hospitals operated by Prospect Medical Holdings in August 2019. The hospital landlord owned 402 facilities and around 40,000 licensed beds in nine countries and across three continents as of Sept. 30, 2024.

Shares of the REIT were up 1.76% premarket.