Summary
American Tower Corporation (AMT) announced on August 6, 2009, its intention to redeem its outstanding 3.00% convertible notes due August 15, 2012. The redemption price is set at 101.125% of the principal amount, plus accrued interest, with a redemption date of August 27, 2009. This action is significant for investors as it represents a move by the company to retire a portion of its debt, likely influencing its capital structure and future interest expenses. Furthermore, holders of these convertible notes retain the right to convert their notes into shares of AMT's Class A common stock until August 26, 2009. The conversion rate is established at 48.7805 shares per $1,000 principal amount. This provides noteholders with a final opportunity to participate in the potential upside of AMT's equity, creating a decision point for them regarding conversion versus redemption.
Key Highlights
- 1AMT is calling for the redemption of $162.2 million in principal of its 3.00% convertible notes due August 15, 2012.
- 2The redemption price is set at 101.125% of the principal amount.
- 3Accrued interest will also be paid up to the redemption date.
- 4The redemption date is scheduled for August 27, 2009.
- 5Noteholders have the option to convert their notes into Class A common stock until August 26, 2009.
- 6The conversion rate is 48.7805 shares of Class A common stock per $1,000 principal amount of notes.
- 7The announcement was made via a press release furnished as an exhibit to the 8-K filing.