8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMERICAN TOWER CORP /MA/ 8-K Report, Material Agreement (Sep 30, 2016)

Filed September 30, 2016For Securities:AMT

Summary

American Tower Corporation (AMT) announced on September 30, 2016, the completion of a registered public offering of $600.0 million in 2.250% senior unsecured notes due 2022 and $400.0 million in 3.125% senior unsecured notes due 2027. The aggregate net proceeds from this offering amounted to approximately $990.6 million. These proceeds are earmarked for the repayment of existing indebtedness under the company's October 2013 term loan, as amended, which indicates a strategic move to refinance and potentially lower its cost of debt. The issuance was structured under an indenture with U.S. Bank National Association as trustee, with specific terms and covenants outlined. These include limitations on mergers, asset sales, and the incurrence of liens, alongside provisions for redemption and repurchase events such as a Change of Control and Ratings Decline. The filing also details events of default that could lead to accelerated repayment of the notes, providing transparency on the company's debt obligations and associated risks.

Key Highlights

  • 1Completed a $1 billion registered public offering of senior unsecured notes, consisting of $600 million due 2022 and $400 million due 2027.
  • 2Net proceeds of approximately $990.6 million will be used to repay existing indebtedness under its October 2013 term loan.
  • 3The 2022 notes carry a coupon of 2.250% and mature on January 15, 2022.
  • 4The 2027 notes carry a coupon of 3.125% and mature on January 15, 2027.
  • 5The indenture includes covenants that limit the company's ability to merge, sell assets, or incur liens, with specific exceptions noted.
  • 6The notes are subject to redemption provisions, including make-whole premiums for early redemption and potential repurchase obligations upon a Change of Control and Ratings Decline.
  • 7Details events of default that could trigger acceleration of the notes' principal and interest payments.

Frequently Asked Questions

The primary purpose of this debt issuance was to refinance existing indebtedness. American Tower Corporation intends to use the net proceeds of approximately $990.6 million to repay outstanding debt under its term loan entered into in October 2013, as amended.

The company issued $600.0 million of 2.250% senior unsecured notes due 2022 and $400.0 million of 3.125% senior unsecured notes due 2027. Interest is payable semi-annually in arrears on January 15 and July 15, starting January 15, 2017.

Yes, the indenture governing these notes includes covenants that limit the company's ability to merge, consolidate, sell assets, or incur liens. These restrictions are subject to certain exceptions, including provisions related to Adjusted EBITDA.

The notes can be redeemed at the company's election, with a make-whole premium applicable under certain conditions. Additionally, if the company undergoes a Change of Control and Ratings Decline, it may be required to repurchase all of the notes at 101% of their principal amount plus accrued interest.