8-KAcquisitions & DispositionsMaterial AgreementsOther Events+1

AMERICAN TOWER CORP /MA/ 8-K Report, Material Agreement (Mar 30, 2015)

Filed March 30, 2015For Securities:AMT

Summary

This 8-K filing from American Tower Corporation (AMT) on March 30, 2015, announces the completion of its significant acquisition of 11,448 wireless communication sites from Verizon Communications Inc. for approximately $5.053 billion in cash. This transaction substantially expands AMT's U.S. tower portfolio and deepens its relationship with a major wireless carrier. The acquisition was funded through a combination of stock and preferred stock offerings, credit facility borrowings, and cash on hand. As part of the deal, AMT will lease or sublease a majority of these sites from Verizon subsidiaries, with an option to purchase them later, and has directly acquired a smaller portion. A key component of the transaction includes a Master Prepaid Lease and Management Agreement, as well as Sale Site Master Lease and MPL Site Master Lease agreements, ensuring Verizon will continue to use these sites as a primary tenant with initial 10-year terms and renewal options.

Key Highlights

  • 1Completion of acquisition of 11,448 wireless communication sites from Verizon for approximately $5.053 billion.
  • 2The acquired sites are primarily leased or subleased from Verizon subsidiaries, with purchase options.
  • 3A smaller portion of the sites were directly acquired by AMT.
  • 4The transaction was funded through equity offerings, credit facilities, and cash.
  • 5New long-term master lease agreements are in place with Verizon as the primary collocator.
  • 6Verizon will have initial 10-year collocation leases with automatic renewal options.
  • 7The number of sites is subject to post-closing adjustments.
  • 8Financial statements and pro forma information related to the acquisition will be filed later via amendment.

Frequently Asked Questions

This 8-K filing officially announces the completion of American Tower Corporation's (AMT) acquisition of 11,448 wireless communication sites from Verizon.

AMT funded the $5.053 billion acquisition through a combination of proceeds from concurrent public offerings of common stock and mandatory convertible preferred stock, borrowings under its revolving credit facilities, and existing cash on hand.

AMT has entered into master lease, management, and sale site agreements with Verizon. Verizon will continue to use the acquired sites as a collocator under long-term leases (initially 10 years with renewal options) with annual rent escalations.

Yes, the exact number of sites included in the transaction is subject to certain post-closing adjustments. Additionally, a portion of the sites are under management arrangements until all necessary authorizations for their lease, sublease, or sale are obtained, and there is no guarantee these authorizations will be secured.