Summary
American Tower Corporation (AMT) has announced the successful completion of an institutional private placement of $200.0 million in aggregate principal amount of 7.125% senior notes due 2012. These new notes are fully fungible with previously issued notes of the same series, bringing the total outstanding principal of this series to $500.0 million. The company secured net proceeds of approximately $199.8 million from this offering. The primary purpose of this financing is to proactively manage its debt structure. AMT intends to use substantially all of the net proceeds to repurchase approximately $85.2 million of its higher-coupon 9 3/8% senior notes due 2009 and to redeem an additional $133.0 million of these same notes. This strategic move aims to reduce future interest expenses and refinance higher-cost debt with a lower-interest-rate instrument.
Key Highlights
- 1Completed a $200 million private placement of 7.125% senior notes due 2012.
- 2These new notes are fungible with existing 7.125% senior notes due 2012.
- 3Net proceeds of approximately $199.8 million were raised from the offering.
- 4Announced intention to use proceeds to repurchase and redeem a portion of 9 3/8% senior notes due 2009.
- 5Repurchased approximately $85.2 million of the 9 3/8% senior notes.
- 6Called for redemption of an additional $133.0 million of the 9 3/8% senior notes.
- 7The redemption is set for January 5, 2005, at par plus a premium and accrued interest.