Summary
American Tower Corporation (AMT) filed an 8-K on December 8, 2016, to report the issuance of 1,171,187 shares of its common stock directly to ALLTEL Communications, LLC. This issuance was in connection with AMT's exercise of a purchase option for 1,523 communications towers under a pre-existing lease agreement, as amended. The shares were issued under the company's existing shelf registration statement and were not underwritten, with no placement agents involved.
Key Highlights
- 1Issuance of 1,171,187 shares of common stock to ALLTEL Communications, LLC on December 8, 2016.
- 2Transaction related to the exercise of a purchase option for 1,523 communications towers.
- 3Shares issued directly to ALLTEL under an amended Lease and Sublease agreement dated April 2, 2001.
- 4Shares were issued under AMT's existing Form S-3 shelf registration statement (File No. 333-211829).
- 5No placement agents or underwriters were used in this direct issuance.
- 6The issued shares were already accounted for in the company's previously disclosed diluted share count.
- 7Legal opinion from Cleary Gottlieb Steen & Hamilton LLP regarding the legality of the shares issued is filed as an exhibit.
Frequently Asked Questions
The primary purpose of this 8-K filing was to formally report the issuance of American Tower Corporation's common stock to ALLTEL Communications, LLC as consideration for the acquisition of 1,523 communications towers.
American Tower Corporation issued 1,171,187 shares of its common stock directly to ALLTEL Communications, LLC.
The share issuance was a direct result of American Tower Corporation exercising its purchase option to acquire 1,523 communications towers from ALLTEL, as per the terms of an existing lease agreement.
According to the filing, the issued shares were included in the company's previously disclosed diluted share number, suggesting that the market may have already factored these shares into its valuation.