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.
Frequently Asked Questions
This 8-K filing was made by American Tower Corporation to announce and provide details on the completion of a registered public offering of its senior unsecured notes, specifically the reopening of existing note series.
The company raised a total of $750 million in aggregate principal amount through the issuance of $250 million of 3.40% senior unsecured notes due 2019 and $500 million of 5.00% senior unsecured notes due 2024. The net proceeds received, after fees and expenses, were approximately $763.8 million.
The net proceeds are primarily intended to repay existing indebtedness drawn under the company's unsecured revolving credit facilities, which were used to fund recent acquisitions. Any remaining funds will be used for general corporate purposes, which may include repaying other existing debt.
The Reopened 2019 Notes will mature on February 15, 2019, bearing a 3.40% interest rate, and are fungible with existing 2019 notes. The Reopened 2024 Notes will mature on February 15, 2024, with a 5.00% interest rate, and are also fungible with existing 2024 notes. Interest is payable semi-annually. The indenture contains covenants restricting mergers, asset sales, and the incurrence of liens, and includes provisions for redemption, a change of control put option, and events of default.