Material Definitive Agreement - Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 6, 2021

MEDICAL PROPERTIES TRUST, INC.

MPT OPERATING PARTNERSHIP, L.P.

(Exact Name of Registrant as Specified in Charter)

Registrants' telephone number, including area code: (205)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Securities Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule of the Securities Exchange Act of 1934 (17 CFR

Medical Properties Trust, Inc.		☐
MPT Operating Partnership, L.P.		☐

On October 6, 2021, MPT Operating Partnership, L.P. (the "Operating Partnership"), a Delaware limited partnership and the operating partnership of Medical Properties Trust, Inc., a Maryland corporation (the "Company"), and MPT Finance Corporation, a Delaware corporation and wholly owned subsidiary of the Operating Partnership (together with the Operating Partnership, the "Issuers"), completed a public offering of €500,000,000 aggregate principal amount of 0.993% senior notes due 2026 (the "Notes"). The Notes are governed by the terms of an Indenture, dated as of October 10, 2013 (the "Base Indenture"), among the Company, the Issuers, certain subsidiaries of the Operating Partnership and Wilmington Trust, National Association, as trustee (the "Trustee"), as supplemented by the Nineteenth Supplemental Indenture, dated as of October 6, 2021 (the "Nineteenth Supplemental Indenture" and, together with the Base Indenture, the "Indenture") among the Issuers, the Company, the Trustee, and Elavon Financial Services DAC, as initial paying agent, registrar and transfer agent (the "Paying Agent, Registrar and Transfer Agent").

Interest on the Notes will be payable annually on October 15 of each year, commencing on October 15, 2022. The Notes will pay interest in cash at a rate of 0.993% per year and will mature on October 15, 2026. The Notes are redeemable in whole at any time or in part from time to time, at the Issuers' option. If the Notes are redeemed prior to 30 days before maturity, the redemption price will be equal to 100% of their principal amount, plus a make-whole premium, plus accrued and unpaid interest up to, but excluding, the applicable redemption date. Within the period beginning on or after 30 days before maturity, the Notes may be redeemed, in whole or in part, at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest up to, but excluding, the applicable redemption date.

The Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company.

In the event of a Change of Control Triggering Event (as defined in the Indenture), each holder of the Notes may require the Issuers to repurchase some or all of its Notes at a repurchase price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest, if any, up to, but excluding, the date of purchase.

The Indenture restricts the Issuers' ability and the ability of their restricted subsidiaries to, among other things: (i) incur debt; (ii) pay dividends and make distributions; (iii) create liens; (iv) enter into transactions with affiliates; and (v) merge, consolidate or transfer all or substantially all of their assets. The Indenture also requires the Issuers and their restricted subsidiaries to maintain total unencumbered assets of at least 150% of their collective unsecured debt. All of these covenants are subject to a number of important limitations and exceptions under the Indenture.

The Indenture also provides for customary events of default, including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal of, the Notes, as applicable, the failure to comply with certain covenants and agreements specified in the Indenture for a period of time after notice has been provided, the acceleration of other indebtedness resulting from the failure to pay principal on such other indebtedness prior to its maturity, and certain events of insolvency. If an Event of Default (as defined in the Indenture) occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable, except that an Event of Default resulting from certain events of insolvency with respect to an Issuer will automatically cause the Notes to become immediately due and payable without any declaration or other act on the part of the Trustee or any holders of Notes.

The offering and sale of the Notes was made pursuant to a free writing prospectus, preliminary prospectus supplement and final prospectus supplement pursuant to the Issuers' and the Company's effective registration statement on Form (Registration Nos. and which has been filed with the Securities and Exchange Commission.

The offering closed on October 6, 2021 and generated approximately €496 million ($588 million) in net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses. The Operating Partnership intends to use the full amount of the net proceeds, along with cash on hand, to fund the redemption of all of its outstanding 4.000% senior unsecured notes due 2022, and any remaining net proceeds for general corporate purposes, which may include repaying amounts outstanding from under the revolving credit facility portion of its U.S. credit agreement, working capital, capital expenditures and potential future acquisitions.

The foregoing is a summary description of certain terms of the Notes and the Indenture, and is qualified in its entirety by reference to the text of the Indenture (including the form of Note included as an exhibit thereto). A copy of the Base Indenture and the Nineteenth Supplemental Indenture (including the form of Note included as an exhibit thereto) are attached as Exhibits 4.1 and 4.2, respectively, to this Current Report on Form and are incorporated herein by reference.

The Trustee has in the past provided and may from time to time in the future provide trustee, registrar, exchange agent, paying agent and other services to the Company and the Issuers.

(d)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

MEDICAL PROPERTIES TRUST, INC.
By:		/s/ R. Steven Hamner
	R. Steven Hamner
	Executive Vice President and Chief Financial Officer
MPT OPERATING PARTNERSHIP, L.P.
By:		/s/ R. Steven Hamner
	R. Steven Hamner
	Executive Vice President and Chief Financial Officer of the sole member of the general partner of MPT Operating Partnership, L.P.

Date: October 13, 2021