Summary
On June 11, 2007, American Tower Corporation (AMT) announced the successful refinancing of its existing $1.6 billion senior secured credit facilities at the operating company (AMT OpCo) level. This was replaced by a new $1.25 billion senior unsecured revolving credit facility at the corporate level. The company drew down approximately $1.0 billion to repay the outstanding amounts under the old facilities. This move signifies a shift towards unsecured debt and potentially offers greater financial flexibility. The new facility has a five-year term, maturing on June 8, 2012, and allows for borrowings for general corporate purposes, including potential equity repurchases under certain conditions. Investors should note the inclusion of financial covenants, such as leverage and interest coverage ratios, which the company must maintain.
Key Highlights
- 1Refinanced $1.6 billion senior secured credit facilities at AMT OpCo with a new $1.25 billion senior unsecured revolving credit facility at the corporate level.
- 2Drew down $1.0 billion under the new facility to repay existing debt.
- 3New credit facility has a five-year term, maturing on June 8, 2012.
- 4Interest rate options include LIBOR-based or base rate borrowings, with margins dependent on the company's debt ratings.
- 5Includes financial maintenance tests: consolidated total leverage ratio (<= 6.00x), consolidated senior secured leverage ratio (<= 3.00x), and interest coverage ratio (>= 2.50x).
- 6Proceeds can be used for general corporate purposes, including refinancing debt and, under specific conditions, equity repurchases.
- 7The new facility is unsecured, marking a potential shift in the company's capital structure.