By Paul A. Harris
Portland, Ore., July 13 – Medical Properties Trust, Inc. priced a $500 million issue of 10-year senior notes (Ba1/BBB-) at par to yield 5¼% in a quick-to-market transaction on Wednesday, according to market sources.
The yield came at the tight end of price talk in the 5 3/8% area and inside of early guidance in the 5½% area.
Goldman Sachs & Co. was the left active bookrunner. J.P. Morgan Securities LLC was the joint active bookrunner.
BofA Merrill Lynch, Barclays, Credit Agricole CIB, KeyBanc Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were joint passive bookrunners.
The issuing entities are operating partnership MPT Operating Partnership, LP, as well as MPT Finance Corp., a wholly owned subsidiary of Medical Properties Trust.
Approximately $474.3 million of the proceeds will be used to redeem all of the MPT Operating Partnership/MPT Finance 6 7/8% senior notes due May 1, 2021, with the remaining proceeds to pay down the company’s revolver and for general corporate purposes, which may include investing in additional health care properties.
The issuer is a Birmingham, Ala.-based self-advised real estate investment trust focused on investing in and owning net-leased health care facilities.
| Issuers: | MPT Operating Partnership, LP and MPT Finance Corp. (Medical Properties Trust, Inc.)
|
| Amount: | $500 million
|
| Maturity: | Aug. 1, 2026
|
| Securities: | Senior notes
|
| Left active bookrunner: | Goldman Sachs & Co.
|
| Joint active bookrunner: | J.P. Morgan Securities LLC
|
| Joint passive bookrunners: | BofA Merrill Lynch, Barclays, Credit Agricole CIB, KeyBanc Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | BBVA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, Stifel
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 378 bps
|
| Call protection: | Five years
|
| Trade date: | July 13
|
| Settlement date: | July 22
|
| Ratings: | Moody's: Ba1
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 5 3/8% area
|
| Marketing: | Quick to market
|
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