8-KEarnings & ResultsMaterial AgreementsExhibits & Filings

CROWN CASTLE INC. 8-K Report, Material Agreement (Aug 2, 2005)

Filed August 2, 2005For Securities:CCI

Summary

Crown Castle International Corp. (CCI) filed an 8-K on August 2, 2005, primarily to report the entry into a significant material definitive agreement. On July 27, 2005, its subsidiary, Crown Castle Operating Company (CCOC), secured a $275 million senior secured revolving line of credit. This facility is set to mature on July 26, 2006, and will be utilized for ongoing working capital needs, general corporate purposes, capital expenditures, potential acquisitions, and equity repurchases. The initial borrowings were earmarked to partially fund the acquisition of assets from TrinTel Communications, Inc. subsidiaries. The filing also disclosed the company's financial results for the second quarter of 2005 via a press release issued on August 2, 2005. The credit facility's terms include interest rates based on prime rate or LIBOR plus a spread, with potential adjustments based on financial tests. It is secured by pledges of stock in subsidiaries and interests in Crown Castle Australia Holdings Pty Ltd, and guaranteed by the parent company and other subsidiaries. The agreement imposes various covenants and restrictions on the company and its guarantors.

Key Highlights

  • 1Secured a $275 million senior secured revolving line of credit for its subsidiary, Crown Castle Operating Company (CCOC).
  • 2The credit facility matures on July 26, 2006, providing a one-year financing window.
  • 3Proceeds will fund working capital, general corporate purposes, capital expenditures, acquisitions, and equity repurchases.
  • 4Initial borrowings supported the acquisition of assets from TrinTel Communications, Inc. subsidiaries.
  • 5Interest rates are tied to KeyBank's prime rate plus 0.50% or LIBOR plus 2.375%, with potential for margin adjustments.
  • 6The facility is secured by subsidiary stock pledges and a security interest in certain accounts, and is guaranteed by the parent company.
  • 7The company also released its Q2 2005 financial results on August 2, 2005.

Frequently Asked Questions

The $275 million credit facility is intended to fund Crown Castle Operating Company's ongoing working capital needs and general corporate purposes. This includes financing capital expenditures, potential acquisitions, and equity repurchases by the parent company, Crown Castle International Corp.

The credit facility matures on July 26, 2006, giving the company a one-year period to utilize the funds and manage its borrowing.

The credit facility is secured by a pledge of all outstanding common shares of Crown Castle Towers 05 LLC, 66% of the outstanding equity interests of Crown Castle Australia Holdings Pty Ltd, and a security interest in CCOC's deposit and securities accounts.

The initial borrowings from this credit facility were used to finance a portion of the acquisition of assets from certain subsidiaries of TrinTel Communications, Inc. by Crown Castle Towers 05 LLC.