Summary
American Tower Corporation (AMT) filed an 8-K on March 29, 2018, detailing two significant financing events aimed at managing its capital structure. The company secured a new $1.5 billion unsecured term loan due March 29, 2019, with Mizuho Bank, Ltd., and other lenders. The proceeds from this loan were used to pay down existing indebtedness under its revolving credit facilities, demonstrating an effort to optimize its debt profile and potentially lower borrowing costs. In parallel, AMT completed a securitization transaction, issuing $500 million in Secured Tower Revenue Securities, Series 2018-1A, with an expected ten-year life and a final maturity in March 2048. This issuance, facilitated through American Tower Trust I and secured by a portfolio of tower sites, also provided proceeds used to reduce outstanding debt under its revolving credit facilities. This dual approach of securing a new term loan and executing a securitization highlights AMT's proactive capital management strategy and its ability to access diverse funding sources.
Key Highlights
- 1Secured a new $1.5 billion unsecured term loan maturing on March 29, 2019.
- 2Used proceeds from the term loan to repay existing indebtedness under revolving credit facilities.
- 3Entered into a securitization transaction, issuing $500 million in Secured Tower Revenue Securities, Series 2018-1A.
- 4The securitization proceeds were also used to repay existing indebtedness under revolving credit facilities.
- 5The term loan has interest rate options of a base rate or LIBOR, with current rate at LIBOR + 0.875%.
- 6The securitized debt is nonrecourse to American Tower Corporation and secured by a pool of tower sites.
- 7The securitized debt has an expected life of approximately ten years and a final repayment date in March 2048.