Medical Properties: Entry Into A Material Definitive Agreement
The following excerpt is from the company's SEC filing
On June 19, 2014, Medical Properties Trust,
Inc., a Maryland corporation (the Company), and MPT Operating Partnership, L.P., a Delaware limited partnership and the Companys operating partnership (the Borrower), entered into an amended and restated revolving
credit and term loan agreement (the Credit Agreement) with Bank of America, N.A., as Syndication Agent, JPMorgan Chase Bank, N.A., as Administrative Agent, and the several lenders from time to time parties thereto. The Company and the
Borrower intend to use proceeds for working capital and for other general corporate purposes, including permitted acquisi
tions and other investments and repayment of debt.
The information set forth below with respect to the Credit Agreement under Item 2.03 of this Current Report on Form 8-K is hereby incorporated in this
Item 1.01 by reference.
Some of the lending banks and their affiliates from time to time have provided in the past and may provide in the future
investment banking, commercial lending and financial advisory services to the Company and its affiliates in the ordinary course of business.
The Credit Agreement governs a $775 million unsecured revolving loan facility and a $125 million unsecured term loan facility. After the closing date, the
Borrower may request incremental term loan and/or revolving loan commitments in an aggregate amount not to exceed $250 million.
The maturity date of the
term loan facility is June 19, 2019. The maturity date of the revolving loan facility is June 19, 2018. The Borrower has an option to extend the maturity date of the revolving loan facility for one year to June 19, 2019. The Borrower
may prepay loans under the Credit Agreement at any time, subject to certain notice requirements.
At the Borrowers election, loans under the Credit
Agreement may also be made as either ABR Loans or Eurodollar Loans. The applicable margin for term loans that are ABR Loans will initially be 0.95% and is adjustable on a sliding scale from 0.60% to 1.20% based on current total leverage. The
applicable margin for term loans that are Eurodollar Loans will initially be 1.95% and is adjustable on a sliding scale from 1.60% to 2.20% based on current total leverage. The applicable margin for revolving loans that are ABR Loans will initially
be 1.00% and is adjustable on a sliding scale from 0.70% to 1.25% based on current total leverage. The applicable margin for revolving loans that are Eurodollar Loans will initially be 2.00% and is adjustable on a sliding scale from 1.70% to 2.25%
based on current total leverage. The pricing grid may be further adjusted subject to an investment grade rating being obtained.
Borrowings under the
Credit Agreement are guaranteed by the Company and substantially all of the Borrowers subsidiaries pursuant to a Guarantee Agreement in favor of JPMorgan Chase Bank, N.A., as Administrative Agent.
The Credit Agreement contains customary financial and operating covenants, including covenants relating to total leverage ratio, fixed charge coverage ratio,
secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, unsecured interest coverage ratio and covenants restricting the incurrence of debt, imposition of liens, the payment of dividends, and entering into affiliate
transactions. The Credit Agreement also contains customary events of default, including among others, nonpayment of principal or interest, material inaccuracy of representations and failure to comply with covenants. If an event of default occurs and
is continuing under the Credit Agreement, the entire outstanding balance may become immediately due and payable.
The foregoing description of the Credit
Agreement is qualified in its entirety by the full terms and conditions of the Credit Agreement. A copy of the Credit Agreement is attached hereto as an exhibit and is incorporated herein by reference.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Medical Properties Trust next reports earnings on August 04, 2014.
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