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 time.
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.