Summary
American Tower Corporation (AMT) announced on November 30, 2016, significant amendments to its key credit facilities. These amendments are investor-focused as they enhance the company's financial flexibility and extend its debt maturity profile. Specifically, the company extended the maturity dates of its 2013 multi-currency senior unsecured revolving credit facility, its 2014 senior unsecured revolving credit facility, and its 2013 unsecured term loan by one year. Beyond extending maturities, AMT also increased the borrowing capacity under its revolving credit facilities and modified covenants related to subsidiary indebtedness and the company's total debt to Adjusted EBITDA ratio. These changes, particularly the increased borrowing limits and more flexible debt covenants, suggest the company is proactively managing its capital structure to support potential growth opportunities or provide a cushion for operational needs.
Key Highlights
- 1Extended maturity dates for three key credit facilities by one year.
- 2Increased the maximum Revolving Loan Commitments under the 2013 Credit Facility to $4.25 billion and under the 2014 Credit Facility to $3.00 billion.
- 3Amended limitations on subsidiary indebtedness to be the greater of $2.25 billion or 50% of consolidated Adjusted EBITDA.
- 4Revised the permitted ratio of Total Debt to Adjusted EBITDA to a maximum of 6.00:1.00, or 7.00:1.00 following a Qualified Acquisition.
- 5The amendments enhance financial flexibility and extend the company's debt runway.
- 6All other material terms of the credit facilities remain unchanged.