Medical Properties Trust Announces $2.4 Bln Private Refinancing Agreement

(RTTNews) - Medical Properties Trust, Inc. (MPT), a real estate investment trust focused on healthcare properties, said Monday that MPT Operating Partnership, L.P. and its subsidiary, MPT Finance Corporation, have entered into an exchange and purchase agreement with institutional investors for a new-money private placement and a private exchange of certain outstanding senior notes.

Upon closing, the transactions are expected to result in the issuance of $2.4 billion of new 9.25% senior secured notes due 2032. The company expects the transaction to close shortly.

MPT plans to use proceeds from the new-money placement to fully redeem its 2026 senior notes and partially redeem its 2027 senior notes. The private exchange will refinance about $1.5 billion of unsecured notes maturing between 2027 and 2031.

The transaction is expected to reduce total principal debt by about $123 million to $9.5 billion and significantly lower near-term unsecured debt maturities. MPT said it will have $1.3 billion of unsecured note maturities through 2028 following the transaction.

The company also plans to use proceeds from additional asset sales to further reduce debt. Its revolving credit facility maturity has been extended to December 30, 2026, with an option for another six-month extension subject to certain conditions.

MPT shares were down 0.53% in pre-market trading after closing at $4.70 on Friday.

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