Medical Properties Trust (NYSE:MPW) stock is falling on Friday after the company outlined a plan to regain late rent and loan obligations from Steward Health Care System.
Medical Properties Trust notes that Steward Health Care System has been struggling to pay its rent and has instead only been making partial monthly payments. That has its current unpaid rent sitting at $50 million.
This has Medical Properties Trust and Steward working together on a plan that will allow the latter to pay back the rent it owes. Medical Properties Trust is also taking actions to reduce its exposure to Steward Health Care System as a result of these rent issues.
Details of the Plan
Part of these plans include a new $60 million bridge loan backed by all Medical Properties Trust’s existing collateral. Adding to that is new second liens on Steward Health Care System’s managed care business. These same liens will also cover Medical Properties Trust’s $215 million of transaction-specific and working capital loans to Steward Health Care System.
To go along with this, Medical Properties Trust has agreed to defer unpaid rent and a tapering of 2024 unpaid rent to $55 million. It expects partial cash payments from Steward to start again in February with a $9 million payment in the first quarter. That should be followed by a $44 million payment in Q2.
MPW stock is down 31% as of Friday morning.
Investors looking for more of the most recent stock market stories are going to want to stick around!
We have all of the hottest stock market news that traders need to know about on Friday! That includes everything going on with shares of Intellia Therapeutics (NASDAQ:NTLA), Fisker (NYSE:FSR) and Safe and Green Development (NASDAQ:SGD) stock today. You can find more on these matters at the links below!
More Stock Market News for Friday
- Intellia Therapeutics Layoffs 2024: What to Know About the Latest NTLA Job Cuts
- Is a Giant Short Squeeze Brewing in Fisker (FSR) Stock?
- Why Is Safe and Green Development (SGD) Stock Up 50% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
