Summary
American Tower Corporation (AMT) announced via an 8-K filing on December 22, 2005, its decision to call for redemption all of its outstanding 12.25% senior subordinated discount notes, issued by its wholly owned subsidiary American Towers, Inc. The redemption is scheduled for February 1, 2006, and will be executed at a price of 106.125% of the notes' accreted value on that date. This action signifies the company's proactive debt management strategy, aiming to refinance or retire higher-cost debt.
Key Highlights
- 1AMT is calling for redemption of all outstanding 12.25% senior subordinated discount notes.
- 2The redemption date is set for February 1, 2006.
- 3The redemption price is 106.125% of the notes' accreted value on the redemption date.
- 4On February 1, 2006, the accreted value per $1,000 principal amount at maturity will be $742.87.
- 5The redemption price per note will be approximately $788.37.
- 6The total expected cost for the redemption is approximately $179.5 million, based on $227.67 million in face amount of notes outstanding.
- 7The company plans to fund this redemption using borrowings from its existing credit facility.