Summary
American Tower Corporation (AMT) has entered into a significant Master Agreement with Verizon Communications, Inc. on February 5, 2015, which involves the exclusive right to lease, acquire, and manage up to 11,489 Verizon wireless communications sites for a total consideration of $5.056 billion. This transaction is structured in two main parts: the lease and potential purchase of approximately 11,324 sites (MPL Sites) through a Master Prepaid Lease with purchase options exercisable between 2034 and 2047, and the direct sale of approximately 165 additional sites (Sale Sites). The deal includes comprehensive agreements covering leasing, management, and collocation, with Verizon retaining colocation rights. The financing for this substantial acquisition is secured through a $5.05 billion bridge loan commitment from Goldman Sachs. Concurrently, AMT amended its existing credit facilities to temporarily adjust debt-to-EBITDA ratio covenants, accommodating the significant leverage associated with this transaction. This strategic move significantly expands AMT's U.S. tower portfolio.
Key Highlights
- 1Entered into a Master Agreement with Verizon for up to 11,489 wireless sites.
- 2Transaction value of $5.056 billion for the sites.
- 3Acquisition includes 11,324 sites under a Master Prepaid Lease with long-term purchase options (2034-2047).
- 4An additional 165 sites will be acquired directly.
- 5Verizon will retain colocation rights on these acquired sites.
- 6Secured $5.05 billion in bridge loan financing commitments.
- 7Amended debt covenants on existing credit facilities to accommodate increased leverage.