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.
Frequently Asked Questions
The company is redeeming these notes, likely as part of its strategy to manage its debt portfolio, potentially refinancing higher-interest debt with potentially lower-cost debt or simply reducing its overall debt obligations.
The total expected cost for the redemption is approximately $179.5 million. This figure is derived from redeeming $227.67 million in face amount of notes at a price of $788.37 per note.
The company intends to use borrowings under its existing American Tower credit facility to fund the redemption.
The notes will be redeemed at a price equal to 106.125% of their accreted value on the redemption date of February 1, 2006. This translates to approximately $788.37 per note.