What is the main reason for this 8-K filing?

The primary reasons for this 8-K filing are to conform American Tower Corporation's previously filed financial statements (2002 Form 10-K) with its recently reported discontinued operation of the Westwood, Massachusetts property in its Q1 2003 10-Q, and to report an amendment to its senior credit facilities.

What happened to the Westwood property?

The Westwood office building, which was primarily held as rental property, was designated as a discontinued operation in the first quarter of 2003 and subsequently sold in May 2003 for $18.5 million. This sale resulted in a pre-tax loss of approximately $4.0 million.

What are the key changes to the company's debt covenants?

The amendment to the senior credit facilities introduces stricter terms for issuing new debt. A significant portion of the net proceeds from new debt issuance must be used to prepay existing obligations under the credit facilities, limiting the company's ability to simply add new debt without reducing existing liabilities. This aims to manage leverage and reduce outstanding debt.

Are there any changes to how the company reports losses on debt extinguishment?

Yes, due to the adoption of SFAS No. 145, American Tower has reclassified prior losses from debt extinguishment that were previously reported as extraordinary items. These are now presented as 'loss from write-off of deferred financing fees and extinguishment of debt'.

AMT 8-K SEC Disclosure — Jul 29, 2003

Summary

American Tower Corporation (AMT) filed an 8-K on July 28, 2003, primarily to conform its prior filings with recent accounting changes and to report an amendment to its senior credit facilities. The company has retroactively classified a Westwood, Massachusetts office building as a discontinued operation, reflecting its sale in May 2003 for $18.5 million and a resulting loss on disposal of approximately $4.0 million. This reclassification impacts previously reported financial statements for fiscal years 2000-2002 to ensure consistency with its first-quarter 2003 reporting. Additionally, the filing details an amendment to AMT's senior credit facilities, announced on July 28, 2003. This amendment imposes stricter conditions on the issuance of new debt. Specifically, 50% of the net proceeds from the first $200 million of new debt must be used to prepay existing credit facility obligations, with the remainder and all proceeds from debt exceeding $200 million placed in a restricted account for debt refinancing or prepayment. These terms aim to manage leverage and ensure debt reduction.

Key Highlights

1American Tower Corporation (AMT) retroactively reclassified its Westwood, Massachusetts office building as a discontinued operation.
2The Westwood property was sold in May 2003 for $18.5 million, resulting in a pre-tax loss of approximately $4.0 million (with a $2.1 million tax benefit).
3This reclassification retroactively impacts financial statements for fiscal years 2000, 2001, and 2002 to align with the Q1 2003 presentation.
4The company adopted SFAS No. 145, leading to reclassification of prior extraordinary losses from debt extinguishment to 'loss from write-off of deferred financing fees and extinguishment of debt'.
5AMT announced an amendment to its senior credit facilities on July 28, 2003.
6The amendment requires 50% of net proceeds from the first $200 million of new debt issuance to be used for prepaying credit facility obligations.
7Remaining proceeds from new debt issuance must be deposited into a restricted account for debt refinancing or prepayment, with a 60-day deadline for use.

AMERICAN TOWER CORP /MA/ 8-K Report (Jul 29, 2003)

Summary

Key Highlights

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