What is the primary purpose of this 8-K filing for American Tower Corporation?

This 8-K filing serves to update investors on the closing of a significant asset acquisition: the sublease of 102 towers from ALLTEL, which occurred on September 5, 2001. It details the financial consideration and financing method for this transaction.

How did American Tower Corporation finance the acquisition of the ALLTEL towers?

American Tower Corporation financed the approximately $30.6 million cash consideration for the ALLTEL tower sublease through its available cash reserves. This included funds raised from its equity and debt financings conducted in January 2001.

What is American Tower Corporation's strategy for these newly acquired towers?

The company's strategy for the 102 acquired towers is to leverage them for future growth by leasing additional space on them to third-party wireless service providers. This is a core part of American Tower's business model, focused on maximizing asset utilization through colocation.

Are there any existing relationships between American Tower and ALLTEL that could impact this deal?

According to the filing, there were no material relationships between American Tower, ALLTEL, or their respective affiliates, officers, or directors prior to this transaction. The agreement was the result of arm's length negotiations between unaffiliated parties.

AMT 8-K SEC Disclosure — Sep 14, 2001

Summary

American Tower Corporation (AMT) filed an 8-K on September 14, 2001, reporting the closing of a sublease agreement for 102 towers from ALLTEL. This transaction, which closed on September 5, 2001, involved a cash consideration of approximately $30.6 million. The acquired towers were primarily used by ALLTEL for its consumer wireless services, and AMT intends to lease additional space on these towers to third parties, enhancing its existing tower portfolio. The company financed this acquisition using existing cash reserves, including funds generated from equity and debt financings in January 2001. This filing serves as an update to previous disclosures regarding the ALLTEL transaction and reiterates that the agreement was the result of arm's length negotiations between unaffiliated parties. Investors should note this expansion of AMT's infrastructure footprint, which is expected to drive future revenue through colocation opportunities.

Key Highlights

1AMT closed on the sublease of 102 towers from ALLTEL on September 5, 2001.
2The transaction involved a cash consideration of approximately $30.6 million.
3The acquired towers were primarily used for ALLTEL's consumer wireless services.
4American Tower plans to lease additional space on these towers to third parties.
5The acquisition was financed through available cash-on-hand, including proceeds from January 2001 financings.
6This filing updates prior disclosures regarding the ALLTEL transaction.
7The agreement was based on arm's length negotiations between unaffiliated parties.

AMERICAN TOWER CORP /MA/ 8-K Report (Sep 14, 2001)

Summary

Key Highlights

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