Summary
American Tower Corporation (AMT) announced on February 14, 2019, the closing of a new $1.3 billion unsecured term loan facility. The net proceeds from this new loan were used to repay existing indebtedness under a prior $1.5 billion term loan agreement from March 2018. This move effectively refinances a portion of the company's debt, potentially offering more favorable terms or extending maturity. The new $1.3 billion term loan matures on February 13, 2020, and does not require principal amortization, allowing for flexibility. Interest rates are variable, based on either a defined base rate or LIBOR, plus a margin that depends on AMT's debt ratings, currently set at LIBOR plus 0.800%. The agreement includes standard financial covenants related to leverage ratios (total leverage not exceeding 6.00:1.00 and senior secured leverage not exceeding 3.00:1.00) and an interest coverage ratio if ratings fall below investment grade.
Key Highlights
- 1Secured a new $1.3 billion unsecured term loan facility.
- 2Used proceeds to repay the existing $1.5 billion term loan from March 2018.
- 3The new term loan matures on February 13, 2020.
- 4No principal amortization is required; full repayment is due at maturity.
- 5Interest rate is based on LIBOR or a defined base rate, with current rate at LIBOR plus 0.800%, subject to debt ratings.
- 6Key financial covenants include a total leverage ratio not to exceed 6.00:1.00 and a senior secured leverage ratio not to exceed 3.00:1.00.
- 7Includes a provision for an interest coverage ratio of at least 2.50:1.00 if debt ratings fall below investment grade.