Summary
American Tower Corporation (AMT) announced on July 2, 2012, the execution of a $750.0 million unsecured term loan credit facility, maturing in five years on June 29, 2017. This facility provides the company with significant liquidity, with net proceeds of approximately $746.4 million. A substantial portion of these proceeds, around $632.0 million, was allocated to repay existing indebtedness under the company's revolving credit facility, strengthening its balance sheet.
Key Highlights
- 1Entered into a new $750 million unsecured term loan credit facility with a 5-year maturity.
- 2Received net proceeds of approximately $746.4 million from the new facility.
- 3Utilized approximately $632.0 million to repay existing debt under its $1.0 billion unsecured revolving credit facility.
- 4The remaining proceeds will be used for general corporate purposes.
- 5The term loan offers flexible interest rate options based on LIBOR or base rate, with margins tied to the company's debt ratings.
- 6The facility includes financial maintenance covenants such as consolidated total leverage ratio (<= 6.00x), senior secured leverage ratio (<= 3.00x), and interest coverage ratio (>= 2.50x).
Frequently Asked Questions
The primary purpose of the new $750 million unsecured term loan facility is to provide American Tower Corporation with additional liquidity. A significant portion of the proceeds was used to repay existing debt, thereby optimizing the company's capital structure.
The company received approximately $746.4 million in net proceeds. Of this amount, $632.0 million was used to repay existing indebtedness under its revolving credit facility, and the remainder will be used for general corporate purposes.
The term loan includes several financial maintenance covenants to ensure the company's financial health. These include a consolidated total leverage ratio not greater than 6.00 to 1.00, a consolidated senior secured leverage ratio not greater than 3.00 to 1.00, and an interest coverage ratio of not less than 2.50 to 1.00.
The new term loan has a maturity date of June 29, 2017, providing a five-year term for this debt.