Summary
American Tower Corporation (AMT) announced on February 13, 2020, the entry into a new $750.0 million unsecured term loan facility. This new loan matures on February 12, 2021, and does not require principal amortization, offering flexibility for repayment. The proceeds were utilized to fully repay an existing $1.3 billion term loan that was set to mature in February 2021, effectively refinancing a portion of the company's debt with a newer, albeit shorter-term, facility. This transaction demonstrates proactive debt management by American Tower, allowing them to replace an upcoming maturity with a new facility that also provides flexible repayment options. The interest rate is tied to either LIBOR or a defined base rate, with an additional margin. The loan includes standard financial covenants, such as a total leverage ratio not exceeding 6.00x (or 7.00x post-acquisition) and a senior secured leverage ratio not exceeding 3.00x, which are typical for this type of financing and are expected to be met by the company.
Key Highlights
- 1Entered into a new $750.0 million unsecured term loan facility on February 13, 2020.
- 2The new term loan matures on February 12, 2021, and allows for voluntary early repayment without penalty.
- 3Proceeds from the new term loan, along with existing revolving credit facilities, were used to fully repay a $1.3 billion term loan maturing in February 2021.
- 4The new term loan offers interest rate options based on either LIBOR or a defined base rate, plus a spread.
- 5Includes financial maintenance covenants: total leverage ratio not to exceed 6.00x (or 7.00x after qualified acquisitions) and senior secured leverage ratio not to exceed 3.00x.