May 19 2010
Medical Properties Trust, Inc. (NYSE: MPW) announced today that it has entered into a new $450 million credit facility with a syndicate of banks that replaces the Company's existing $220 million credit facility.
“When combined with the proceeds of our recent equity offerings, we have more than $525 million available for acquisitions”
The new credit facility:
- provides for 3.5-year revolving loans of up to $300 million at 300 to 375 basis points over LIBOR. The interest rate will depend on the Company's overall level of debt; if MPT's total debt to total assets ratio is between 40% and 50%, the spread will be 325 basis points;
- provides for a $150 million 6-year term loan at 350 basis points over LIBOR, subject to a 1.50% LIBOR floor;
- permits the Company to increase the revolving loans to $375 million through an accordion feature during the next 18 months;
- is secured by a pledge of equity interests in substantially all of the Company's subsidiaries and certain mortgage notes held by the Company's subsidiaries.
"When combined with the proceeds of our recent equity offerings, we have more than $525 million available for acquisitions," said Edward K. Aldag, Jr., chairman, president and CEO of Medical Properties Trust.
The new credit facility contains customary financial and operating covenants, and events of default. The joint lead arrangers and bookrunners for the new credit facility are J.P. Morgan Securities Inc., KeyBank National Association and RBC Capital Markets Corporation.
SOURCE Medical Properties Trust, Inc.