Summary
American Tower Corporation (AMT) filed an 8-K on January 10, 2014, to report the completion of a registered public offering of senior unsecured notes. The company successfully raised $250 million in 3.40% senior notes due 2019 and $500 million in 5.00% senior notes due 2024, collectively referred to as the 'Reopened Notes.' The total net proceeds, after deducting commissions and expenses, amounted to approximately $763.8 million, plus accrued interest. This issuance was executed under existing indenture agreements, with the new notes being fungible with previously issued notes of the same series.
Key Highlights
- 1Completion of a public offering for $750 million in senior unsecured notes: $250 million of 3.40% notes due 2019 and $500 million of 5.00% notes due 2024.
- 2Net proceeds from the offering were approximately $763.8 million (plus accrued interest), exceeding the principal amount due to issuance premiums.
- 3Proceeds are intended to repay existing indebtedness under revolving credit facilities, including funds used for acquisitions, and for general corporate purposes.
- 4The new notes are fungible with previously issued notes maturing in February 2019 and February 2024, respectively.
- 5The offering was conducted under an indenture dated May 23, 2013, as supplemented by an indenture dated August 19, 2013.
- 6Key covenants within the indenture limit mergers, asset sales, and incurrence of liens, with specific exceptions noted.
- 7The notes include provisions for redemption, a change of control with ratings decline put option, and standard events of default, including bankruptcy and payment defaults.