Medical Properties Trust Finalizes $2.7 Billion Notes Offering
Deal News | Mar 03, 2025 | Goodwin
Medical Properties Trust (MPT) has successfully completed a significant $2.7 billion dual-tranche global offering of senior secured notes, marking it as a notable achievement in debt capital markets. This offering includes a $1.5 billion tranche with an 8.500% interest rate and a 1.0 billion Euro tranche with a 7.000% interest rate, culminating in a blended coupon rate of 7.885%. The issuance was managed by Goodwin's REITs and Debt Capital Markets teams, ensuring legal and financial compliance. Noteworthy is the collateral arrangement whereby first-priority liens secure the notes against equity of MPT subsidiaries handling 167 properties across the U.S., U.K., and Germany. Also, MPT has amended its senior credit facilities in cooperation with a lending syndicate led by J.P. Morgan. The end of 2024 marked MPT's presence with 396 facilities encompassing approximately 39,000 licensed beds globally. This strategic financing strengthens MPT's abilities to leverage its hospital assets effectively, highlighting its growth and international reach since its formation in 2003.
Sectors
- Real Estate Investment Trusts (REITs)
- Debt Capital Markets
- Healthcare Real Estate
Geography
- United States – Medical Properties Trust is based in the U.S. and a significant portion of its assets and operations are located there.
- United Kingdom – MPT holds properties in the U.K., indicating its presence in this region.
- Germany – Germany is one of the countries where MPT's collateral assets are located, relevant to the secured notes offering.
Industry
- Real Estate Investment Trusts (REITs) – MPT is a real estate investment trust specializing in net-leased hospital facilities, making this classification pertinent.
- Debt Capital Markets – The article details MPT's $2.7 billion global offering of senior secured notes, relevant to debt capital markets.
- Healthcare Real Estate – MPT focuses on acquiring and managing hospital facilities, aligning with the healthcare real estate sector.
Financials
- $2.7 billion – The total size of the senior secured notes offering.
- 8.500% – Interest rate for the $1.5 billion USD tranche.
- 7.000% – Interest rate for the 1.0 billion Euro tranche.
- 7.885% – Blended coupon rate for MPT on the total offering.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Medical Properties Trust (MPT) | Target Company | Company | A real estate investment trust (REIT) specializing in hospital facilities with a global presence. |
| Goodwin | Legal Advisor | Company | Provided legal advisory services for the $2.7 billion notes offering. |
| J.P. Morgan | Lead Lending Syndicate | Company | Led the lending syndicate in the amendment of MPT's senior credit facilities. |
| MPT Operating Partnership, L.P. | Co-Issuer | Company | MPT's operating partnership involved in the notes issuance. |
| MPT Finance Corporation | Co-Issuer | Company | A wholly-owned subsidiary of MPT involved in the notes issuance. |