Medical Properties Trust (MPT) has extended further financial assistance to its largest tenant, Steward Health Care System, in an effort to recover outstanding loan balances and unpaid rent. As of December 31, Steward owes approximately $50 million in unpaid rent and has been making partial rent payments due to liquidity challenges caused by changes in vendor payment terms.
To address this situation, MPT is intensifying its efforts to collect rent and fulfill other loan obligations. Steward Health Care System is exploring strategic options such as a potential sale or re-tenanting of certain operations. Additionally, Steward is seeking a third-party capital partner for its managed care business.
As part of the agreement, MPT has agreed to defer the current unpaid rent and gradually taper the deferral of rent due in 2024 until either June 30 or the completion of asset sales. MPT has previously provided substantial financial support to Steward through loans amounting to hundreds of millions of dollars, as well as an equity investment.
Furthermore, MPT has committed to providing a new $60 million bridge loan to Steward. This loan will be secured by existing collateral and new second liens on Steward's managed care business.
The partnership between MPT and Steward Health Care System reflects their shared commitment to navigating the challenges posed by the current economic landscape. Through these collaborative efforts, both parties aim to ensure the long-term stability and success of the healthcare industry.
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