By Paul A. Harris
Portland, Ore., July 17 – Medical Properties Trust priced an upsized $900 million issue of 4 5/8% 10-year senior notes (existing ratings Ba1/BBB-) at 99.5 to yield 4.688% in a quick-to-market Wednesday trade, according to a market source.
The issue size increased from $750 million.
The yield printed on the tight side of yield talk in the 4¾% area.
Barclays was the lead left bookrunner. Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, BBVA Securities Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, KeyBanc Capital Markets LLC, MUFG, RBC Capital Markets LLC, Stifel Nicolaus & Co. Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
The Birmingham, Ala.-based health care focused real estate investment trust plans to use the proceeds to help fund a $1.55 billion investment in 14 acute care hospitals and two behavioral health facilities from Prospect Medical Holdings, Inc., and for general corporate purposes.
The notes were sold via MPT Operating Partnership, LP and MPT Finance Corp.
The notes feature a mandatory redemption if the acquisition is not completed within 180 days, in which case the notes will be redeemed at par plus accrued interest.
| Issuers: | MPT Operating Partnership, LP and MPT Finance Corp.
|
| Amount: | $900 million
|
| Maturity: | Aug. 1, 2029
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, BBVA Securities Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, KeyBanc Capital Markets LLC, MUFG, RBC Capital Markets LLC, Stifel Nicolaus & Co. Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC and Scotia Capital
|
| Coupon: | 4 5/8%
|
| Price: | 99.5
|
| Yield: | 4.688%
|
| Spread: | 263 bps
|
| First call: | Aug. 1, 2024 at 102.313
|
| Trade date: | July 17
|
| Settlement date: | July 26
|
| Existing ratings: | Moody's: Ba1
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 4¾% area
|
| Marketing: | Quick to market
|
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