Medical Properties Trust Secures £631 Million Loan for UK Hospital Portfolio
Medical Properties Trust, Inc. (MPT) has announced the completion of a £631 million ($800 million) non-recourse, non-amortizing secured financing backed by certain properties in its UK portfolio. This significant deal marks a major milestone for the company, demonstrating its ability to secure long-term financing at competitive rates.
The loan, which has a 10-year term, was led by Song Capital, a European real estate investment firm, and comprises a consortium of global institutional, insurance, and pension investors. The transaction includes 27 of the 36 facilities MPT leases to Circle Health in the UK.
Medical Properties Trust’s UK hospital portfolio
Edward K. Aldag, Jr., Chairman, President, and Chief Executive Officer of MPT, commented, “In the first five months of the year, we have raised $2.4 billion of liquidity, comfortably exceeding our initial full year liquidity target of $2.0 billion, as sophisticated third-party investors continue to recognize the value embedded in our leading portfolio of hospital real estate assets.”
The loan carries a fixed cash pay rate of 6.9% over the 10-year term, excluding debt issuance costs. This financing demonstrates MPT’s ability to borrow at long-term fixed costs well inside market-implied rates on its outstanding debt and significantly extend the overall duration of its debt maturities.
Medical Properties Trust’s hospital financing strategy
The company intends to use the proceeds to repay outstanding debt, including its £105 million secured term loan maturing in December 2024, borrowings under its revolving credit facility, and a portion of its GBP term loan maturing in early 2025, as well as for other general corporate purposes.
“The terms of this most recent financing prove our ability to borrow at long-term fixed costs well inside market-implied rates on our outstanding debt and significantly extend the overall duration of our debt maturities,” said Aldag.
Medical Properties Trust’s hospital portfolio
This significant financing deal highlights Medical Properties Trust’s continued growth and success in the healthcare real estate sector.
