8-KMaterial AgreementsOther EventsExhibits & Filings

AMERICAN TOWER CORP /MA/ 8-K Report, Material Agreement (Jun 7, 2022)

Filed June 7, 2022For Securities:AMT

Summary

American Tower Corporation (AMT) announced the settlement of a registered public offering of its common stock, which closed on June 7, 2022. The offering involved the issuance of 9,185,000 shares, including the full exercise of the underwriters' over-allotment option. This transaction generated approximately $2,291.9 million in net proceeds for the company, after accounting for discounts and expenses. The primary purpose of these net proceeds is to repay existing indebtedness. Specifically, AMT intends to use the funds to pay down borrowings under its $3.0 billion 364-day unsecured term loan, which was established in December 2021. Notably, a portion of this term loan was utilized to finance the company's acquisition of CoreSite Realty Corporation, which also concluded in December 2021. This offering represents a strategic move to strengthen the balance sheet and manage its debt obligations following a significant acquisition.

Key Highlights

  • 1AMT successfully completed a registered public offering of common stock, issuing 9,185,000 shares.
  • 2The offering generated approximately $2,291.9 million in net proceeds for the company.
  • 3The full over-allotment option of 835,000 shares was exercised by the underwriters.
  • 4Net proceeds will be used to repay existing indebtedness under a $3.0 billion unsecured term loan from December 2021.
  • 5This debt repayment is linked to financing the acquisition of CoreSite Realty Corporation, closed in December 2021.
  • 6The offering was conducted under the Company's automatic shelf registration statement on Form S-3.

Frequently Asked Questions

The primary purpose of this stock offering was to raise capital to repay existing indebtedness. Specifically, the net proceeds are intended to reduce the outstanding balance on American Tower's $3.0 billion 364-day unsecured term loan, which was used in part to finance the acquisition of CoreSite Realty Corporation.

American Tower Corporation raised approximately $2,291.9 million in net proceeds from this offering, after deducting underwriting discounts and estimated offering expenses.

The offering is directly linked to the CoreSite acquisition. A portion of the $3.0 billion term loan being repaid with the proceeds from this offering was used to finance the CoreSite acquisition, which closed in December 2021. This offering helps American Tower manage the debt associated with that strategic acquisition.

Yes, the underwriters exercised their 30-day option in full to purchase an additional 835,000 shares of common stock to cover over-allotments. This resulted in the total issuance of 9,185,000 shares.