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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INC | g26822e8vk.htm |
Exhibit 99.1
Contact: | Charles Lambert Finance Director Medical Properties Trust (205) 397-8897 clambert@medicalpropertiestrust.com |
MEDICAL PROPERTIES TRUST ANNOUNCES PRIVATE OFFERING OF
$450 MILLION OF SENIOR NOTES BY ITS OPERATING PARTNERSHIP AND MPT FINANCE CORPORATION
$450 MILLION OF SENIOR NOTES BY ITS OPERATING PARTNERSHIP AND MPT FINANCE CORPORATION
BIRMINGHAM, Ala. April 12, 2011 Medical Properties Trust, Inc. (the Company) (NYSE:
MPW) announced today that 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), are offering $450 million aggregate principal
amount of senior notes due 2021 (the Notes) to qualified institutional buyers in reliance on Rule
144A under the Securities Act of 1933, as amended (the Securities Act), and to non-U.S. persons
outside of the United States in compliance with Regulation S under the Securities Act. The Notes
will be senior unsecured obligations of the Issuers, guaranteed by the Company and by certain
subsidiaries of the Operating Partnership (the Guarantors). Contemporaneously with the closing
of the offering of the Notes, the Operating Partnership intends to terminate its $150.0 million
term loan and enter into an amendment to its existing credit agreement, which will govern an
unsecured revolving credit facility that is expected to provide for at least $250.0 million of
commitments with availability of up to $225.8 million after giving effect to borrowing base
capacity and outstanding letters of credit at closing (the New Unsecured Credit Facility). The
New Unsecured Credit Facility will be guaranteed by the Guarantors. The consummation of the
offering of the Notes and the entry into the amendment to the existing credit agreement are
conditioned upon each other.
The Operating Partnership intends to use the net proceeds from the issuance (i) to repay and
terminate its $150.0 million term loan, (ii) repay borrowings outstanding under the revolving
credit facility portion of its existing credit facility, (iii) to repay and terminate the $9.0
million term loan facility collateralized by the Companys rehabilitation hospital in Wichita,
Kansas, (iv) to pay transaction fees and costs incurred in connection with the offering of the
Notes, repayment and termination of the $150.0 million term loan and $9.0 million collateralized
term loan facility and entry into an amendment to its existing credit agreement and (v) for general
business purposes, which may include investment opportunities and debt reduction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy
the Notes. The Notes have not been registered under the Securities Act, or the securities laws of
any other jurisdiction. Unless so registered, the Notes may not be offered or sold in the United
States except pursuant to an exemption from the registration requirements of the Securities Act and
the applicable securities laws of any other jurisdiction.
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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 Operating Partnerships ability to consummate the
offering, the use of the proceeds therefrom as described and the Operating Partnerships ability to
enter into an amendment to the existing credit agreement. For further discussion of the facts that
could affect outcomes, please refer to the A Warning About Forward Looking Statements and Risk
Factors sections of the Companys Annual Report on Form 10-K for the year ended December 31, 2010
and as further updated by the Companys 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.