Summary
American Tower Corporation (AMT) announced on October 28, 2005, a significant refinancing of its primary operating subsidiaries' credit facilities. The company has replaced its existing $1.1 billion senior secured credit facility with a new $1.3 billion facility and the SpectraSite $900 million facility with a new $1.15 billion facility. These transactions collectively increase the company's available liquidity by approximately $977 million, net of outstanding letters of credit. The new credit facilities provide enhanced flexibility, offering substantial revolving credit and term loan components, with delayed draw options available for up to a year. They also include provisions for general corporate purposes, equity repurchases, and refinancing of other debt. The company expects to recognize a one-time loss of approximately $16 million in the fourth quarter of 2005 related to the retirement of old obligations.
Key Highlights
- 1Successful refinancing of both American Tower and SpectraSite senior secured credit facilities.
- 2Total new credit facilities aggregate $2.45 billion ($1.3 billion for American Tower, $1.15 billion for SpectraSite).
- 3Net liquidity increase of approximately $977 million post-refinancing.
- 4New facilities include revolving credit, Term Loan A, and Delayed Draw Term Loans, providing financial flexibility.
- 5Each facility has a five-year term, maturing on October 27, 2010, with no required amortization.
- 6Key financial covenants include a leverage ratio (Total Debt to Adjusted EBITDA) not exceeding 5.50:1.00 and an interest coverage ratio (Adjusted EBITDA to Interest Expense) of at least 2.50:1.00.
- 7Company anticipates a $16 million loss on retirement of long-term obligations in Q4 2005.