Summary
American Tower Corporation (AMT) filed an 8-K on April 6, 2017, reporting the completion of a registered public offering of €500.0 million in 1.375% senior unsecured notes due 2025. The net proceeds, approximately €489.8 million after expenses, are intended to be used for repaying a portion of its existing revolving credit facility and for general corporate purposes. This issuance of debt further diversifies AMT's capital structure and extends its debt maturity profile. The notes are governed by an indenture that includes covenants limiting the company's ability to merge, sell assets, or incur liens, with specific exceptions. Investors should note the terms related to potential redemption, change of control provisions, and events of default as outlined in the filing.
Key Highlights
- 1Completion of a €500.0 million registered public offering of 1.375% senior unsecured notes due April 4, 2025.
- 2Net proceeds of approximately €489.8 million to be used for repaying revolving credit facility debt and general corporate purposes.
- 3The notes are senior unsecured obligations of American Tower Corporation.
- 4Interest rate of 1.375% per annum, payable annually in arrears on April 4, starting in 2018.
- 5The indenture includes covenants restricting mergers, asset sales, and the incurrence of liens, with exceptions based on Adjusted EBITDA.
- 6The company has the option to redeem the notes at a specified price (including a make-whole premium before January 4, 2025).
- 7Provisions for a mandatory repurchase at 101% of principal plus accrued interest upon a Change of Control and Ratings Decline.