Medical Properties Trust has hired Goldman Sachs to soft market a $1-2 billion new issue secured bond at 10% interest, according to multiple sources familiar with the deal. Questions remain on what the use of proceeds would be restricted to and it’s unclear on who would be allowed to participate in the offering.
MPT currently has $1.2-1.3 billion of structurally senior bank debt and the next unsecured 3.325% 500 million sterling bond maturity is March. Bondholders who spoke with this reporter think MPT needs to raise at least $2bn to cover their liquidity gap and hope the proceeds would be used to pay off all the bank debt and the 2025 bond.
On January 15th MPT drew down its RCF to pay a $700 million term loan leaving them virtually with no liquidity according to multiple credit analyst interviewed by this reporter. Bloomberg first reported the term loan payoff.
MPT did not respond for comment as of press time. This is a developing story.
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