Summary
American Tower Corporation (AMT) announced on October 1, 2007, the successful completion of a $500 million private placement of 7.00% senior unsecured notes due in 2017. The net proceeds of approximately $493.5 million were utilized, along with available cash, to fully repay and terminate its existing $500 million senior unsecured term loan credit facility. This action demonstrates a proactive approach to debt management and refinancing by the company. The issuance of these new notes, under an indenture with The Bank of New York Trust Company, N.A., extends the company's debt maturity profile to 2017. The new notes carry a semi-annual interest payment and include covenants that, while limiting certain future debt and liens, provide exceptions tied to Adjusted EBITDA. Investors should note the provisions for potential note redemption, a change of control event requiring a repurchase at a premium, and a detailed list of events that constitute default.
Key Highlights
- 1Completed a $500 million private placement of 7.00% senior unsecured notes due October 15, 2017.
- 2Received net proceeds of approximately $493.5 million from the note issuance.
- 3Used proceeds and available cash to fully repay and terminate a $500 million senior unsecured term loan credit facility.
- 4The new notes will mature on October 15, 2017, with semi-annual interest payments.
- 5The Indenture includes covenants limiting subsidiary debt, liens, and asset sales, with exceptions based on Adjusted EBITDA.
- 6Notes may be redeemed at any time with a make-whole premium.
- 7A Change of Control and Ratings Decline scenario triggers a mandatory repurchase of notes at 101% of principal plus accrued interest.