By Rebecca Melvin
New York, March 20 - Medical Properties Trust Inc. price a downsized $75 million of five-year exchangeable senior notes Wednesday at par to yield 9.25% with an initial conversion premium of 15%, according to a company release.
The Rule 144A deal was originally expected to total $125 million, and it came at the cheap end of talk, which was for a coupon of 8.75% to 9.25% and an initial conversion premium of 15% to 20%.
There was an over-allotment option for an additional $11.25 million of notes.
Concurrent with the offering, Medical Properties sold 11 million shares of common stock at $10.75, with an over-allotment option of up to 1.65 million additional shares.
UBS Investment Bank was the bookrunner of the notes; while the stock offering was being sold via bookrunner UBS, with KeyBanc Capital Markets and RBC Capital Markets acting as co-lead managers and Deutsche Bank Securities, JPMorgan and Raymond James Bank acting as co-managers, according to a company news release.
Medical Properties is a Birmingham, Ala.-based real estate investment trust focused on health care facilities.
Proceeds will be used to fund a portion of its $371 million acquisition from HCP Inc. of a portfolio of up to 21 health care facilities.
The remainder of the purchase price will be funded from proceeds received from its previously announced purchase and sale transactions with Vibra Healthcare LLC and from existing credit facilities.
The REIT has also secured commitments from a syndicate of lenders for a senior secured interim loan facility, which is expected to provide up to $300 million of any unfunded balance of the purchase price.
The health care facilities portfolio consists of seven acute care hospitals, three long-term acute care hospitals, five inpatient rehabilitation hospitals and six wellness centers, located in 15 states.
| Issuer: | Medical Properties Trust Inc.
|
| Issue: | Exchangeable senior notes
|
| Amount: | $75 million, downsized from $125 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | April 1, 2013
|
| Bookrunner: | UBS Investment Bank
|
| Concurrent offering: | 11 million common shares
|
| Coupon: | 9.25%
|
| Price: | Par
|
| Yield: | 9.25%
|
| Conversion premium: | 15%
|
| Exchange price: | $12.36
|
| Initial exchange rate: | 80.8898
|
| Pricing date: | March 19
|
| Distribution: | Rule 144A
|
| Price talk: | 8.75% to 9.25%, up 15% to 20%
|
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