8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMERICAN TOWER CORP /MA/ 8-K Report, Material Agreement (Jun 13, 2019)

Filed June 13, 2019For Securities:AMT

Summary

American Tower Corporation (AMT) announced on June 13, 2019, the successful completion of a registered public offering of senior unsecured notes, raising approximately $2.27 billion in aggregate net proceeds. The offering comprised $650 million of 2.950% senior notes due 2025 and $1.65 billion of 3.800% senior notes due 2029. These proceeds are earmarked for significant debt reduction, with approximately $1.5 billion allocated to repay outstanding balances on its 2013 senior unsecured revolving credit facility and $770 million directed towards its 2012 senior unsecured revolving credit facility. The company issued these notes under a new indenture with U.S. Bank National Association, as trustee. The terms of the indenture include covenants that limit the company's ability to merge, sell assets, or incur additional liens, with specific exceptions. The issuance represents a strategic move to refinance existing debt with new, longer-term obligations, potentially optimizing the company's capital structure and extending its debt maturity profile. Investors should note the details of the covenants, redemption provisions, and events of default outlined in the filing.

Key Highlights

  • 1AMT completed a public offering of $650 million in 2.950% senior unsecured notes due 2025.
  • 2AMT completed a public offering of $1.65 billion in 3.800% senior unsecured notes due 2029.
  • 3Total net proceeds from the offering were approximately $2,269.0 million.
  • 4Proceeds will be used to repay approximately $1.499 billion of existing debt under its June 2013 senior unsecured revolving credit facility.
  • 5Proceeds will also be used to repay approximately $770.0 million of existing debt under its January 2012 senior unsecured revolving credit facility.
  • 6The new notes were issued under an indenture with U.S. Bank National Association as trustee.
  • 7The indenture contains covenants limiting mergers, asset sales, and the incurrence of liens, subject to certain exceptions.

Frequently Asked Questions

American Tower Corporation raised a total of $2.30 billion in aggregate principal amount, consisting of $650.0 million in 2.950% senior unsecured notes due 2025 and $1.65 billion in 3.800% senior unsecured notes due 2029. After deducting commissions and expenses, the net proceeds were approximately $2,269.0 million.

The company intends to use the net proceeds primarily for debt repayment. Approximately $1.499 billion will be used to repay existing indebtedness under its senior unsecured revolving credit facility entered into in June 2013, and $770.0 million will be used to repay existing indebtedness under its senior unsecured revolving credit facility entered into in January 2012.

The 2025 notes mature on January 15, 2025, with a 2.950% interest rate, and the 2029 notes mature on August 15, 2029, with a 3.800% interest rate. Interest is payable semi-annually. The indenture includes covenants that restrict the company's ability to merge, sell assets, or incur liens, and also outlines provisions for redemption and events of default, including a potential repurchase obligation upon a Change of Control and Ratings Decline.

Yes, this offering is specifically aimed at repaying existing indebtedness under two of AMT's senior unsecured revolving credit facilities: one from June 2013 and another from January 2012. This indicates a refinancing strategy to extend debt maturities and potentially improve its debt structure.