What is the primary purpose of the new revolving credit facility and the amendments to existing credit facilities?

The new revolving credit facility and the amendments to existing credit facilities are primarily intended to provide American Tower Corporation with increased financial flexibility, enhance liquidity, and support its general corporate purposes, including potential acquisitions, refinancing of debt, and share repurchases.

How do the amendments to the credit facilities affect the company's leverage covenants?

The amendments allow for a higher leverage ratio, increasing the maximum permitted Total Debt to Adjusted EBITDA from 6.00x to 6.50x through September 30, 2014. Additionally, the definition of "Total Debt" is now net of unrestricted domestic cash, which could further improve the company's compliance with leverage covenants.

What is the total available borrowing capacity for American Tower Corporation after these announcements?

Following these announcements, American Tower Corporation has an aggregate borrowing capacity of approximately $4.0 billion across its 2012 Credit Facility, 2013 Credit Facility (now including the exercised $500 million increase), and the new $1.0 billion Revolving Credit Facility.

Are there any penalties for early repayment of the new revolving credit facility?

No, the new revolving credit facility does not require amortization and can be repaid prior to maturity, in whole or in part, at the company's option without any penalty or premium.

AMT 8-K: Material Agreements & Financial Events

Summary

American Tower Corporation (AMT) announced on September 20, 2013, that it has entered into a new $1.0 billion revolving credit facility. This facility, maturing on September 19, 2014, offers flexible borrowing options with interest rates tied to LIBOR or a Base Rate, subject to the company's debt ratings. The facility does not require amortization and can be repaid early without penalty, providing significant financial flexibility. In addition to the new credit facility, AMT also amended its existing credit agreements for its $750 million term loan, $1.0 billion senior unsecured revolving credit facility from 2012, and $1.5 billion senior unsecured revolving credit facility from 2013. These amendments include a crucial change to the definition of "Total Debt," now calculated net of unrestricted domestic cash, and an increase in the maximum permitted Total Debt to Adjusted EBITDA ratio from 6.00x to 6.50x through September 2014. Furthermore, the 2013 credit facility was expanded with an additional $750 million in potential expansion, and AMT exercised an option to immediately increase the 2013 facility commitments by $500 million, bringing its total capacity under its revolving credit facilities to approximately $4.0 billion.

Key Highlights

1Entered into a new $1.0 billion revolving credit facility maturing September 19, 2014, with flexible interest rates and no prepayment penalties.
2Amended existing credit facilities to redefine "Total Debt" as net of unrestricted domestic cash, potentially improving leverage ratios.
3Increased the maximum permitted Total Debt to Adjusted EBITDA ratio from 6.00x to 6.50x for its term loan and revolving credit facilities until September 30, 2014.
4Added an expansion feature to the 2013 credit facility allowing for up to an additional $750 million in commitments.
5Exercised an option to increase the 2013 credit facility commitments by $500 million, bringing its total capacity to $2.0 billion.
6Total aggregate borrowing capacity across its key credit facilities now stands at approximately $4.0 billion.
7No amounts were outstanding under the 2012, 2013, or new revolving credit facilities as of September 20, 2013, indicating strong liquidity.

AMERICAN TOWER CORP /MA/ 8-K Report, Material Agreement (Sep 23, 2013)

Summary

Key Highlights

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