Summary
American Tower Corporation (AMT) filed an 8-K on January 31, 2012, to report the entry into a new $1.0 billion unsecured revolving credit facility (the "2012 Credit Facility"). This facility has a five-year term, maturing in January 2017, and allows for repayment without penalty. The company initially borrowed $700 million under this facility, alongside existing credit lines and cash, to fully repay its prior $1.25 billion senior unsecured revolving credit facility (the "2007 Credit Facility") and a $325.0 million term loan. This move effectively refinances and extends AMT's debt maturity profile. The new credit facility offers flexible interest rates based on LIBOR or a base rate, with margins tied to the company's debt ratings. It also includes commitment fees on undrawn amounts. The agreement imposes financial maintenance covenants, including limits on consolidated total leverage, senior secured leverage, and a minimum interest coverage ratio. The ability to borrow under this facility will be subject to ongoing compliance with these covenants. Additionally, AMT announced its 2012 Annual Meeting of Stockholders will be held on June 19, 2012.
Key Highlights
- 1Established a new $1.0 billion unsecured revolving credit facility maturing in January 2017.
- 2Used proceeds from the new facility, along with other funds, to fully repay existing $1.25 billion senior unsecured revolving credit facility and a $325.0 million term loan.
- 3Refinanced and extended debt maturity, improving financial flexibility.
- 4Borrowings bear interest based on LIBOR or a base rate, with margins linked to debt ratings.
- 5Includes quarterly commitment fees on undrawn portions of the credit facility.
- 6Subject to financial maintenance covenants: consolidated total leverage ratio (<= 6.00:1.00), consolidated senior secured leverage ratio (<= 3.00:1.00), and interest coverage ratio (>= 2.50:1.00).
- 7Announced the date for the 2012 Annual Meeting of Stockholders: June 19, 2012.