MedCath Completes Sale of Heart Hospital of Austin for $83.8M

MedCath Corporation MDTH and its physician partners announced today the completion of the sale of substantially all the assets of Heart Hospital of Austin to St. David's Healthcare Partnership, L.P. The transaction, which was announced in February and was subject to customary closing conditions and regulatory requirements, was completed today. Under terms of the transaction, MedCath and its physician partners sold substantially all the assets of Heart Hospital of Austin for a purchase price equal to $83.8 million plus retention of working capital. MedCath anticipates that its net proceeds will equal approximately $24.1 million after repayment of the hospital's third party long term debt and related prepayment fee, liquidation of retained working capital, distributions to our minority partners and payment of estimated taxes.