Improved Pricing and Added Flexibility from an Increased Number of
Includes $250 Million Accordion for Potential $1.15 Billion
BIRMINGHAM, Ala.--(BUSINESS WIRE)--
Medical Properties Trust, Inc. (NYSE:MPW) (“MPT” or the “Company”)
announced today that its subsidiary, MPT Operating Partnership, L.P.
(the “Borrower”) has closed a new $900 million senior unsecured credit
facility (the “Credit Facility”). The Credit Facility is comprised of a
$775 million senior unsecured revolving credit facility (the “Revolver”)
initially priced at 200 basis points over LIBOR, and a $125 million
senior unsecured term loan facility (the “Term Loan”) initially priced
at 195 basis points over LIBOR. The Credit Facility replaces the
Company’s existing $400 million unsecured revolving credit facility and
$100 million unsecured term loan.
The Revolver matures in June 2018 and can be extended for an additional
12 months at the Company’s option. The Term Loan matures in June 2019.
The Credit Facility has an accordion feature that allows the Company to
expand the size of the facility by up to $250 million through increases
to the Revolver, Term Loan, both or as a separate term loan tranche. The
Credit Facility also allows the Company to borrow up to $300 million of
the Revolver amount in alternate currencies, including Australian
Dollars, Euros, Canadian Dollars, Pounds, Swiss Francs and Japanese Yen.
“The increased size of this facility and its improved pricing is an
indication of the strength of MPT’s balance sheet and our growth
expectation for 2014 and beyond,” said Edward K. Aldag, Jr., Chairman,
President and CEO of Medical Properties Trust. “Our pipeline remains
very strong and we now have the flexibility to borrow a portion of our
credit facility in alternate currencies supporting our strategy to
diversify a percentage of our portfolio internationally. This credit
facility was strongly oversubscribed and we are very pleased with the
continued support from our existing relationships and to begin new
relationships with additional top tier banks.”
The credit facility was arranged by J.P. Morgan Securities LLC, Merrill
Lynch, Pierce, Fenner & Smith Incorporated, KeyBanc Capital Markets
Inc., and Barclays Bank PLC 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. KeyBank National Association., Barclays
Bank PLC, The Royal Bank of Canada, SunTrust Bank, Compass Bank, Credit
Agricole Corporate and Investment Bank, Wells Fargo Bank N.A., and
Deutsche Bank AG New York Branch were Documentation Agents. In addition
to Barclays, Credit Agricole, and Wells Fargo, Citizens Bank National
Association, Credit Suisse AG, Cayman Islands Branch, and First
Tennessee Bank National Association joined the bank group for the first
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.
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 or future events to differ materially from those expressed in or
underlying such forward-looking statements, including without
limitation: the Borrower’s ability to generate sufficient earnings to
repay the credit facility and other debt obligations, the expansion of
the facility by up to $250 million, and the acquisition of additional
growth for 2014 and beyond. For further discussion of the factors that
could affect outcomes, please refer to the “Risk factors” section of the
Company’s Annual Report on Form 10-K for the year ended December 31,
2013, and as updated by the Company’s subsequently filed Quarterly
Reports on Form 10-Q and other SEC filings. Except as otherwise required
by the federal securities laws, the Company undertakes no obligation to
update the information in this press release.
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
– Investor Relations
Source: Medical Properties Trust, Inc.