Improved Pricing and Enhanced Flexibility
Includes a New €200 Million Term Loan
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Feb. 2, 2017--
Medical Properties Trust, Inc. (NYSE: MPW) (the “Company”) announced
today that its subsidiary, MPT Operating Partnership, L.P. (the
“Borrower”) has closed a new $1.7 billion senior unsecured credit
facility (the “Credit Facility”). The Credit Facility is comprised of a
$1.3 billion senior unsecured revolving credit facility (the “Revolver”)
initially priced at 125 basis points over LIBOR, a $200 million senior
unsecured term loan denominated in Dollars (the “USD Term Loan”) priced
at 150 basis points over LIBOR and a €200 million senior unsecured term
loan denominated in Euros (the “EUR Term Loan”) priced at 150 basis
points over LIBOR. The Credit Facility replaces the Borrower’s existing
$1.3 billion senior unsecured revolving credit facility and $250 million
unsecured term loan.
The Borrower expects to use the proceeds of the EUR Term Loan together
with cash on hand to redeem its €200 million 5.750% Senior Notes due
2020 (the “2020 Notes”), including premium and accrued and unpaid
interest thereon.
The Revolver matures in 2021 and can be extended for an additional year
at the Borrower’s option. The USD Term Loan matures in 2022 and the EUR
Term Loan matures in 2020 and can be extended for an additional year.
The Credit Facility has an accordion feature that allows the Borrower to
expand the size of the facility by up to $500 million through increases
to the Revolver and USD Term Loan, both or as a separate term loan
tranche. The Credit Facility also allows the Borrower to borrow up to
€650 million in alternative currencies, including Euros and Pounds.
“This credit facility is another indication of our strong financial
position and financial flexibility,” said Edward K. Aldag, Jr.,
Chairman, President and CEO. “The improvement in pricing and the
addition of the euro term loan and additional term loan gives us
increased flexibility in the capital markets. We are very pleased with
the continued support from our capital providers.”
The Credit Facility was arranged by JP Morgan Chase Bank, N.A. and
Merrill Lynch Pierce, Fenner & Smith Incorporated as Joint Lead
Arrangers and Bookrunners and Barclays Bank PLC, Goldman Sachs Bank USA
and KeyBank National Association as Joint Lead Arrangers. JPMorgan Chase
Bank, N.A. is serving as the Administrative Agent and Bank of America,
N.A. acted as the Syndication Agent. Barclays Bank PLC, Goldman Sachs
Bank USA, Keybank National Association, Citizens Bank, N.A., Compass
Bank, Credit Agricole Corporate and Investment Bank, Credit Suisse AG,
Cayman Islands Branch, Royal Bank of Canada, SunTrust Bank, The Bank of
Tokyo-Mitsubishi UFJ, Ltd, and Wells Fargo Bank, National Association
served as Documentation Agents. The Bank of Nova Scotia, First Tennessee
Bank, N.A. and Cadence Bank are participants in the Credit Facility.
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. MPT’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. For more information, please visit the
Company’s website at www.medicalpropertiestrust.com.
This press release includes “forward-looking statements” within the
meaning of securities laws of applicable jurisdictions. 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 future events to differ materially from those
expressed in or underlying such forward‐looking statements, including
without limitation: the risk that the Borrower is unable to redeem the
2020 Notes on the terms described herein, the risk that the lenders
under the Credit Facility do not fulfill their obligations under the
Credit Facility, the risk that we are unable to fulfill our obligations
under the Credit Facility and the factors referenced under the section
captioned “Item 1.A Risk Factors” in the combined annual report of the
Company and the Borrower on Form 10-K for the year ended December 31,
2015 and in the combined quarterly reports of the Company and the
Borrower on Form 10-Q for the quarters ended June 30, 2016 and September
30, 2016. 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/20170202005666/en/
Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Tim Berryman, 205-397-8589
Director
– Investor Relations
tberryman@medicalpropertiestrust.com