Why Medical Properties Trust Stock Is Tumbling Today
Shares of Medical Properties Trust (NYSE: MPW) had declined by over 10% by 11:30 a.m. ET on Friday. Weighing on the healthcare REIT was a report in the Wall Street Journal regarding its top two tenants.
The Wall Street Journal reported today that hospital systems Steward Health Care and Prospect Medical Holdings had hired financial advisors to assist them with refinancing their credit lines. They rank as Medical Properties Trust's two largest tenants. Steward supplied more than 27% of the REIT's rental revenue, while Prospect accounted for about 10%.
The report said that Steward had hired Guggenheim Securities to refinance its asset-based loans, which mature at the end of this year. The company's lenders gave the hospital operator a one-year extension late last year. Meanwhile, Prospect Medical has hired Houlihan Lokey to help it refinance debt. Those investment banks specialize in assisting financially troubled companies in finding solutions.
Source Fool.com
