Summary
American Tower Corporation (AMT) filed an 8-K on February 10, 2021, detailing significant amendments to its credit facilities and the establishment of new delayed draw term loans. These actions are primarily in preparation for the company's substantial acquisition of the Telxius European and Latin American tower divisions, a transaction valued at approximately 7.7 billion EUR ($9.4 billion). The amendments extend maturity dates on existing revolving credit facilities, increase borrowing capacities, and adjust leverage ratio covenants to accommodate the acquisition. Importantly, new delayed draw term loans totaling approximately 1.9 billion EUR ($2.3 billion) were established to help fund the Telxius purchase. These financial maneuvers demonstrate AMT's proactive approach to securing necessary capital and managing its debt structure in anticipation of a major strategic growth initiative.
Key Highlights
- 1Amendments to the 2019 Multicurrency Credit Facility and 2019 Credit Facility extend maturity dates to June 28, 2024, and January 31, 2026, respectively.
- 2Commitments under the 2019 Multicurrency Credit Facility and 2019 Credit Facility were increased to $4.1 billion and $2.9 billion, respectively, with sublimits for multicurrency and EUR borrowings enhanced.
- 3New 364-day and 3-year delayed draw term loans totaling approximately 1.9 billion EUR ($2.3 billion) were established to partially fund the Pending Telxius Acquisition.
- 4The maximum permitted Total Debt to Adjusted EBITDA ratio is adjusted to 7.50x for four quarters post-acquisition, stepping down to 6.00x thereafter.
- 5The Company repaid its $750.0 million unsecured term loan due February 12, 2021.
- 6The Bridge Loan Commitment from Bank of America was reduced to approximately $5.2 billion due to additional committed amounts secured from the amended credit facilities and new delayed draw term loans.