Medical Properties Trust Shares Fall on $2.4 Billion Note Issuance for Debt Refinancing

By Elias Schisgall

Shares of Medical Properties Trust fell after the company said it would issue $2.4 billion in new notes as part of a debt refinancing.

Shares were down more than 13% to $4.08 as of midday Monday. The stock has fallen 19% this year.

The real estate investment trust said it entered into an agreement with institutional investors for a new-money private placement, whose proceeds it will use to fund the redemption of some senior notes due 2026 and 2027. It also agreed to a private exchange of senior notes, which will refinance an aggregate principal amount of about $1.5 billion worth of unsecured notes.

All told, the transactions will entail issuing $2.4 billion in 9.25% senior secured notes due 2032, and will reduce the company's total principal debt by around $123 million to $9.5 billion. The company also said it expects to deleverage further through near-term asset sales at "significant gains."

"With only $1.3 billion in unsecured note maturities through 2028, the Company now benefits from further flexibility and optionality as it looks to other near-term further refinancing and deleveraging opportunities," the company said.

Medical Properties on Monday reported a narrower second-quarter loss of $2.6 million, or 1 cent a share, compared with a loss of $98.4 million, or 16 cents a share, a year earlier.

Stripping out certain one-time items, normalized funds from operations were 15 cents a share. Analysts polled by FactSet were expecting 16 cents a share.

Revenue rose to $259.3 million from $240.4 million a year prior. Analysts were expecting $248 million in revenue.

(END) Dow Jones Newswires

August 10, 2026 13:08 ET (17:08 GMT)