Summary
Crown Castle International Corp. (CCI) announced on June 1, 2006, the execution of a significant new credit facility totaling $1.25 billion. This facility comprises a $1.0 billion senior secured term loan maturing in 2014 and a $250 million senior secured revolving credit facility maturing in 2007. The proceeds are earmarked for important strategic initiatives, including the repayment of existing debt, funding the previously announced acquisition of Mountain Union Telecom for approximately $309 million, and general corporate purposes such as capital expenditures and potential future acquisitions.
Key Highlights
- 1Entry into a new $1.25 billion Credit Facility consisting of a $1.0 billion Term Loan and a $250 million Revolver.
- 2The Term Loan matures on June 1, 2014, and the Revolver matures on May 31, 2007.
- 3The Credit Facility is secured by pledges of equity interests and security interests in deposit and securities accounts of certain subsidiaries.
- 4Proceeds will be used to repay $295 million of outstanding debt, fund the $309 million acquisition of Mountain Union Telecom, and for general corporate purposes.
- 5Interest rates are based on either the prime rate or LIBOR plus a spread.
- 6The agreement includes financial covenants and restrictions on debt, liens, capital expenditures, and dividends.
- 7The company also updated its outlook for the second quarter and full year 2006 via a press release.
Frequently Asked Questions
The new credit facility totals $1.25 billion, composed of a $1.0 billion senior secured term loan and a $250 million senior secured revolving credit facility.
The funds will be used to repay $295 million of existing debt, finance the approximately $309 million acquisition of Mountain Union Telecom, and for general corporate purposes, which can include capital expenditures and other acquisitions.
The senior secured term loan matures on June 1, 2014, and the senior secured revolving credit facility matures on May 31, 2007.
Yes, the credit facility includes financial covenants and places restrictions on the company and its subsidiaries regarding actions such as incurring additional debt, purchasing company securities, making capital expenditures, and paying dividends.