Medical Properties Trust, Inc. (MPT) has just announced the pricing of a significant private offering, comprising $1.5 billion in aggregate principal amount of senior secured notes due 2032 (USD Notes) and €1.0 billion aggregate principal amount of senior secured notes due 2032 (Euro Notes). The pricing represents a blended coupon of 7.885%.
MPT anticipates the net proceeds from the USD Notes offering to be approximately $1.46 billion and the net proceeds from the Euro Notes offering to be approximately €974 million. These estimates are after deducting discounts and commissions to the initial purchasers but before deducting offering-related expenses.
The company plans to use a portion of the net proceeds from the notes to fully redeem its 3.325% senior notes due 2025, 2.500% senior notes due 2026, and 5.250% senior notes due 2026, including related accrued interest, fees, and expenses. The remaining net proceeds, estimated to be around $0.8 billion, will be allocated for general corporate purposes, including potential future acquisitions, working capital, capital expenditures, and repaying other indebtedness.
Furthermore, the notes will be fully and unconditionally guaranteed by the company and its collateral-owning subsidiaries, and will be secured by first-priority liens on equity of the company’s subsidiaries that directly own or ground lease a diversified pool of 167 properties with 19 different operators in the U.S., U.K., and Germany.
This offering of the notes and related guarantees was and will be made in a private transaction, relying upon an exemption from the registration requirements of the Securities Act of 1933, as amended, in the United States only to persons reasonably believed to be “qualified institutional buyers,” as defined in Rule 144A under the Securities Act, or outside the United States pursuant to Regulation S under the Securities Act.
MPT is a self-advised real estate investment trust formed in 2003, and has grown to become one of the world’s largest owners of hospital real estate with 402 facilities and approximately 40,000 licensed beds in nine countries and across three continents as of September 30, 2024. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $4.69. Check out the company's full 8-K submission here.