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Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW) announced today that the previously announced public offering of $150 million aggregate principal amount of 6.375% senior notes due 2022 (the “Notes”) by its operating partnership, MPT Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), and MPT Finance Corporation, a Delaware corporation and wholly-owned subsidiary of the Operating Partnership (“MPT Finance,” and together with the Operating Partnership, the “Issuers”), priced today at an issue price of 102.00%, which represents a yield to the par redemption date of February 15, 2020 of 5.998%. The Notes will be senior unsecured obligations of the Issuers, guaranteed by the Company and by certain subsidiaries of the Company, and will form a part of the same series as the Issuers’ 6.375% senior notes due 2022, issued February 17, 2012, $200 million of which are currently outstanding.
The Operating Partnership intends to use the net proceeds from the offering of the Notes to fund a portion of its previously announced acquisition of three general acute care hospitals from IASIS Healthcare LLC. Pending closing of the acquisition, the Operating Partnership intends to use the net proceeds from the offering of the Notes to repay borrowings under its revolving credit facility and to invest in short-term, liquid investments. If the acquisition is not completed, the Operating Partnership intends to use the net proceeds from the offering of the Notes to repay borrowings under its revolving credit facility and for general corporate purposes, which may include investing in additional healthcare properties. The consummation of the offering of the Notes is not contingent upon the closing of the acquisition or the Company’s concurrent offering of its common stock.
J.P. Morgan, BofA Merrill Lynch, Deutsche Bank Securities and RBC Capital Markets are acting as joint book-running managers, and KeyBanc Capital Markets is acting as lead manager for the offering.