Summary
American Tower Corporation (AMT) filed an 8-K on March 15, 2013, detailing significant financing activities. The company, through its subsidiaries, issued $1.8 billion in Secured Tower Revenue Securities, Series 2013-1 and Series 2013-2. This issuance was primarily used to repay $1.75 billion in outstanding debt related to the Commercial Mortgage Pass-Through Certificates, Series 2007-1, along with associated costs. The new debt consists of a nonrecourse loan secured by a portfolio of tower sites and their operating cash flows. The securities were issued in two series with different maturities and interest rates: Series 2013-1A for $500 million at 1.551% with an expected life of approximately five years, and Series 2013-2A for $1.3 billion at 3.070% with an expected life of approximately ten years. The effective weighted average fixed interest rate for the entire loan is 2.468%. This move refinances a substantial portion of AMT's debt, potentially lowering its overall borrowing costs and extending its debt maturity profile.
Key Highlights
- 1AMT issued $1.8 billion in Secured Tower Revenue Securities (Series 2013-1 and 2013-2) on March 15, 2013.
- 2The proceeds were primarily used to repay $1.75 billion of existing debt from the 2007 Certificates.
- 3The new financing is a nonrecourse loan secured by tower sites and their cash flows.
- 4Series 2013-1A ($500 million) carries a 1.551% interest rate with an approximate 5-year life.
- 5Series 2013-2A ($1.3 billion) carries a 3.070% interest rate with an approximate 10-year life.
- 6The effective weighted average fixed interest rate for the combined loan is 2.468%.
- 7The transaction involves various agreements including a Loan Agreement, Management Agreement, Cash Management Agreement, and Trust and Servicing Agreement.