Summary
American Tower Corporation (AMT) filed a Form 8-K on December 11, 2013, reporting on a Second Amendment to its existing $1.0 billion senior unsecured revolving credit facility originally entered into on January 31, 2012. This amendment, effective December 10, 2013, primarily aims to harmonize its terms with the company's more recent 2013 credit facilities, totaling $3.0 billion in revolving credit. The key adjustments enhance financial flexibility for the company and its subsidiaries. The amendment raises the aggregate limit on indebtedness of, and guaranteed by, AMT's subsidiaries from $600 million to $800 million. It also introduces new covenants related to compliance with sanctions laws and regulations. Furthermore, the requirement for maintaining an interest expense ratio is now contingent on AMT's debt ratings falling below investment grade, and the threshold for certain defaults related to judgments or acceleration of indebtedness has been increased from $200 million to $250 million. These changes are largely intended to align the older credit facility with the terms of newer agreements, providing a more consistent and flexible financing structure.
Key Highlights
- 1Amendment to a $1.0 billion senior unsecured revolving credit facility dated January 31, 2012.
- 2The amendment aims to align terms with other 2013 credit facilities, totaling $3.0 billion.
- 3Increased subsidiary indebtedness and guarantee limit from $600 million to $800 million.
- 4Added representation and warranty regarding compliance with sanctions laws and regulations.
- 5Interest expense ratio covenant is now conditional on debt ratings falling below investment grade.
- 6Increased threshold for certain defaults (judgments, accelerated indebtedness) from $200 million to $250 million.