Summary
American Tower Corporation (AMT) announced on March 15, 2019, the completion of a registered public offering of $650.0 million in 3.375% senior unsecured notes due 2024 and $600.0 million in 3.950% senior unsecured notes due 2029. The total offering amounted to $1.25 billion, with net proceeds of approximately $1.231 billion after deducting commissions and expenses. This debt issuance is primarily intended to refinance existing revolving credit facilities, demonstrating a proactive approach to managing its debt structure and potentially lowering its cost of capital.
Key Highlights
- 1Completion of a $1.25 billion senior unsecured note offering consisting of $650 million in 3.375% notes due 2024 and $600 million in 3.950% notes due 2029.
- 2Net proceeds from the offering are approximately $1.231 billion.
- 3The primary use of proceeds is to repay existing indebtedness under senior unsecured revolving credit facilities, including approximately $526 million and $705 million respectively.
- 4The notes were issued under an indenture with U.S. Bank National Association as trustee.
- 5Covenants in the indenture include limitations on mergers, asset sales, and incurring liens, with specific exceptions such as liens not exceeding 3.5x Adjusted EBITDA.
- 6The company has the option to redeem the notes at a premium prior to certain dates, or at par thereafter.
- 7Events of default are defined, including failure to pay interest or principal, non-compliance with covenants, and bankruptcy or insolvency events, which can lead to acceleration of debt repayment.