BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sep. 7, 2017--
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/
Source: Medical Properties Trust, Inc.
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director
– Investor Relations
tberryman@medicalpropertiestrust.com