Medical Properties Trust Announces Upsizing and Pricing of $1.4 Billion of 5.000% Senior Notes Due 2027
September 07 2017 - 5:49PM
Business Wire
Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW)
announced today that it has priced an upsized offering of $1.4
billion aggregate principal amount of senior notes due 2027 (the
“Notes”) by 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”). The
Notes will bear interest at a rate of 5.000% per year. The offering
size was increased to $1.4 billion from the previously announced
$1.0 billion aggregate principal amount. The Notes will be senior
unsecured obligations of the Issuers, guaranteed by the
Company.
The Issuers intend to use approximately $364.4 million of the
net proceeds from the offering of the Notes 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. The Issuers intend to use the remainder of the net
proceeds from the offering, 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 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 are acting as joint
book-running managers for the offering of the Notes.
The offering of the Notes is expected to close on or about
September 21, 2017, subject to certain closing conditions. The
offering of the Notes was made under an effective shelf
registration statement of the Company, the Operating Partnership
and MPT Finance and a related preliminary prospectus supplement and
free writing prospectus. The Company intends to file a final
prospectus supplement with the Securities and Exchange Commission
(“SEC”) for the offering of the Notes to which this communication
relates. When available, the final 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 final 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/20170907006727/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