By Paul A. Harris
Portland, Ore., Aug. 12 – MPT Operating Partnership LP, the operating partnership of Medical Properties Trust, Inc., priced a €500 million issue of split-rated seven-year senior notes (Ba1/BBB-) at par to yield 4% on Wednesday, according to market sources.
Although the deal was priced on the investment-grade desk, it was talked at a yield in the 4% area.
And although Standard & Poor's assigned its investment-grade BBB- senior unsecured rating to the notes, Medical Properties Trust Inc.'s corporate credit rating is a speculative grade BB+. The senior unsecured rating is one notch above the corporate credit rating as a result of the revised recovery rating: a 2 recovery reflects 70% to 90% expected default recovery, S&P said.
Goldman Sachs & Co., Credit Agricole CIB, Credit Suisse Securities (Europe) Ltd., J.P. Morgan, BofA Merrill Lynch and Barclays were the joint bookrunners for the notes sale.
The Birmingham, Ala.-based self-advised real estate investment trust plans to use the proceeds to finance the remaining price payable in connection with its acquisition of up to 35 health care facilities from the Median Kliniken group Sarl, as well as related financing and sale-leaseback transactions. Proceeds will also be used to fund previously announced investments in Italy and Spain and to repay revolver debt.
Medical Properties Trust was formed to capitalize on the changing trends in health care delivery by acquiring and developing net-leased health care facilities.
| Issuer: | MPT Operating Partnership LP (Medical Properties Trust, Inc.)
|
| Amount: | €500 million
|
| Maturity: | Aug. 19, 2022
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| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Credit Agricole CIB, Credit Suisse Securities (Europe) Ltd., J.P. Morgan, BofA Merrill Lynch, Barclays
|
| Co-lead managers: | Banco Bilbao Vizcaya Argentaria, SA, KeyBanc Capital Markets, RBC Capital Markets, Stifel, SunTrust Robinson Humphrey, Wells Fargo Securities
|
| Coupon: | 4%
|
| Price: | Par
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| Yield: | 4%
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody's: Ba1
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| Standard & Poor's: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 4% area
|
| Marketing: | Quick to market
|
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