Summary
American Tower Corporation (AMT) announced the successful refinancing of its credit facility, replacing its previous credit agreement with a new $1.1 billion senior secured credit facility. This new facility consists of a $400 million revolving credit facility, a $300 million Term Loan A, and a $400 million Term Loan B, all guaranteed by the Company and its subsidiaries and secured by substantially all of its assets. The refinancing resulted in net proceeds of approximately $685 million, of which about $670 million was used to repay outstanding debt under the old facility. The remaining proceeds are earmarked for general corporate purposes, including refinancing other existing indebtedness. A significant benefit of the new facility is the extension of maturity dates for most borrowings from 2007 to 2011, providing greater financial flexibility.
Key Highlights
- 1Refinanced existing credit facility with a new $1.1 billion senior secured credit facility.
- 2New facility includes a $400 million revolving credit facility, $300 million Term Loan A, and $400 million Term Loan B.
- 3Approximately $685 million in net proceeds received from borrowings, with $670 million used to repay prior debt.
- 4Maturity dates extended for the majority of borrowings from 2007 to 2011.
- 5New facility allows for using borrowings and internal funds to repurchase other indebtedness without lender approval.
- 6The facility contains specific financial covenants and operating restrictions, including leverage, senior leverage, interest coverage, and fixed charge ratios.
- 7Potential write-off of up to approximately $12 million in deferred financing fees associated with the refinanced credit facilities.