Medical Properties Trust plans $80 million unsecured term loan

By Sara Rosenberg

New York, Jan. 31 - Medical Properties Trust Inc. has received a commitment for a new $80 million senior unsecured term loan, according to a 424B5 filed with the Securities and Exchange Commission on Tuesday.

J.P. Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the deal.

In the filing, the company said it is assuming an interest rate of Libor plus 225 basis points on the term loan.

Covenants include total leverage, fixed charge coverage, mortgage secured leverage, unsecured leverage and interest coverage ratios.

In addition, the company is looking to upsize its existing revolver to $400 million from $330 million through the accordion feature.

Proceeds from the term loan, along with revolver borrowings, will be used to help fund the acquisition of Ernest Health Inc., an Albuquerque, N.M.-based operator of long-term acute care hospitals and inpatient rehabilitation hospitals, for $400 million.

Other funds for the transaction will come from other debt or equity capital market issuances, or a combination thereof.

Medical Properties Trust is a Birmingham, Ala.-based real estate investment trust that acquires and develops net-leased health care facilities.

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