Medical Properties Trust Announces Public Offering of $1.0 Billion of Senior Notes Due 2027
September 07 2017 - 7:33AM
Business Wire
Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW)
announced today that its operating partnership, MPT Operating
Partnership, L.P. (the “Operating Partnership”), and MPT Finance
Corporation, a wholly-owned subsidiary of the Operating Partnership
(“MPT Finance” and, together with the Operating Partnership, the
“Issuers”), intend to offer, subject to market and other
conditions, $1.0 billion aggregate principal amount of senior notes
due 2027 (the “Notes”). The Notes will be senior unsecured
obligations of the Issuers, guaranteed by the Company.
The Issuers intend to use the net proceeds from the offering of
the Notes, together with cash on hand and other sources of debt
capital, which may include borrowings under the Operating
Partnership’s revolving credit facility, to finance the Company’s
previously announced anticipated investment in a portfolio of ten
acute care hospitals and one behavioral health facility currently
operated by IASIS Healthcare for an aggregate purchase price and
investment of approximately $1.4 billion and the related investment
by a subsidiary of the Operating Partnership in approximately $100
million in minority preferred interests of Steward Health Care
System LLC (collectively, the “Steward-IASIS Transactions”). If the
Steward-IASIS Transactions are not completed or the Company elects
not to consummate the Steward-IASIS Transactions, in either case,
on or prior to 180 days after the closing date of the Notes
offering, the Issuers will be required to redeem $500 million
aggregate principal amount of the Notes in a special mandatory
redemption. If such redemption were to occur, the Issuers intend to
use the remaining proceeds to redeem all $350 million aggregate
principal amount of their existing 6.375% senior notes due 2022,
including premium and accrued and unpaid interest thereon, to repay
borrowings under the Operating Partnership’s revolving credit
facility and for general corporate purposes, which may include
investing in additional healthcare properties.
J.P. Morgan, Barclays, BofA Merrill Lynch, BBVA, Credit Agricole
CIB, Credit Suisse, Goldman Sachs & Co. LLC, KeyBanc Capital
Markets, MUFG, RBC Capital Markets, Scotiabank, Stifel, SunTrust
Robinson Humphrey and Wells Fargo Securities will act as joint
book-running managers for the offering of the Notes.
The offering of the Notes will be made under an effective shelf
registration statement of the Company, the Operating Partnership
and MPT Finance. The Company intends to file a preliminary
prospectus supplement with the Securities and Exchange Commission
(“SEC”) for the offering of the Notes to which this communication
relates. When available, the preliminary prospectus may be obtained
from J.P. Morgan via Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, NY 11717 or toll free at (866) 803-9204;
or from Barclays via Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, NY 11717 or toll free at (888) 603-5847 or
emailing: barclaysprospectus@broadridge.com; or by visiting the
EDGAR database on the SEC’s web site at www.sec.gov.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities of the Company or
any of its subsidiaries, nor shall there be any sale of any such
securities in any jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate
investment trust formed to capitalize on the changing trends in
healthcare delivery by acquiring and developing net-leased
healthcare facilities. The Company’s financing model allows
hospitals and other healthcare facilities to unlock the value of
their underlying real estate in order to fund facility
improvements, technology upgrades, staff additions and new
construction. Facilities include acute care hospitals, inpatient
rehabilitation hospitals, long-term acute care hospitals, and other
medical and surgical facilities.
The statements in this press release that are forward looking
are based on current expectations and actual results or future
events may differ materially. Words such as “expects,” “believes,”
“anticipates,” “intends,” “will,” “should” and variations of such
words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the actual results of the Company, the Issuers or future
events to differ materially from those expressed in or underlying
such forward‐looking statements, including without limitation: the
satisfaction of all conditions to, and the timely closing (if at
all), of the Steward-IASIS Transactions; the ability of the Issuers
to consummate the offering of Notes and the intended use of
proceeds therefrom; and the factors referenced under the section
captioned “Item 1.A Risk Factors” in the combined annual report of
the Company and the Operating Partnership on Form 10-K for the year
ended December 31, 2016, and in the combined quarterly report of
the Company and the Operating Partnership on Form 10-Q for the
quarter ended June 30, 2017, which are incorporated by reference
into the preliminary prospectus supplement related to the offering
of the Notes. Actual results, performance or achievements may vary
materially from any projections and forward looking statements and
the assumptions on which those statements are based. Readers are
cautioned not to place undue reliance on forward-looking
statements. Except as otherwise required by the federal securities
laws, the Company undertakes no obligation to update the
information in this press release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170907005800/en/
Medical Properties Trust, Inc.Tim Berryman, 205-969-3755Director
– Investor Relationstberryman@medicalpropertiestrust.com
Medical Properties (NYSE:MPW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Medical Properties (NYSE:MPW)
Historical Stock Chart
From Apr 2023 to Apr 2024