Summary
American Tower Corporation (AMT) filed an 8-K on March 3, 2015, to report on key financial and transactional events. The company successfully completed concurrent registered public offerings of common stock and mandatory convertible preferred stock, raising substantial capital. These offerings generated approximately $2.22 billion in net proceeds from common stock and $1.22 billion from depositary shares, with an additional $0.3 billion from the underwriters' exercise of their overallotment options. These proceeds, combined with existing cash and credit facilities, are intended to finance the recently announced acquisition of assets from Verizon Communications, Inc. (Verizon). In light of these successful capital raises, AMT has terminated a $5.05 billion bridge loan commitment from Goldman Sachs that was previously arranged for the Verizon transaction, indicating sufficient internal and committed resources are now available. The company also detailed the use of proceeds if the Verizon transaction is not completed, stating they would be used for general corporate purposes, including other acquisitions or debt repayment.
Key Highlights
- 1Completed concurrent public offerings of common stock and mandatory convertible preferred stock, raising significant capital.
- 2Raised approximately $2.22 billion net from common stock offering and $1.22 billion net from depositary shares offering.
- 3Generated an additional $0.3 billion net from the exercise of overallotment options by underwriters.
- 4Terminated a $5.05 billion bridge loan commitment from Goldman Sachs due to sufficient capital resources.
- 5Intends to use net proceeds, cash on hand, and credit facilities to finance the acquisition of assets from Verizon.
- 6Prepared to use net proceeds for general corporate purposes, including other acquisitions or debt repayment, if the Verizon transaction is not completed.