8-KMaterial AgreementsFinancial EventsRegulation FD+1

CROWN CASTLE INC. 8-K Report, Material Agreement (Jan 11, 2007)

Filed January 11, 2007For Securities:CCI

Summary

Crown Castle International Corp. (CCI) announced on January 11, 2007, via an 8-K filing, the execution of a new $250 million senior secured revolving credit facility by its subsidiary, Crown Castle Operating Company, on January 9, 2007. This facility matures on January 8, 2008, and is secured by equity interests of certain subsidiaries, including those related to the planned acquisition of Global Signal Inc., as well as deposit and securities accounts. The facility is guaranteed by the parent company and certain subsidiaries. The proceeds from this credit facility are intended for general corporate purposes, which may encompass capital expenditures, acquisitions, and share repurchases. The availability of funds will be contingent upon the company's adherence to specific financial ratios. As of January 10, 2007, the credit facility remained undrawn. This new facility replaces a prior credit agreement that was repaid in full in November 2006 following the issuance of Senior Secured Tower Revenue Notes.

Key Highlights

  • 1Crown Castle International Corp. entered into a new $250 million senior secured revolving credit facility on January 9, 2007.
  • 2The credit facility is provided to its subsidiary, Crown Castle Operating Company, and matures on January 8, 2008.
  • 3The facility is secured by equity interests in existing and future subsidiaries, including those related to the Global Signal acquisition, and by deposit/securities accounts.
  • 4The parent company, Crown Castle International Corp., and certain subsidiaries are guarantors of the credit facility.
  • 5Proceeds can be used for general corporate purposes, including capital expenditures, acquisitions, and share purchases.
  • 6Availability under the credit line is subject to financial ratio covenants.
  • 7The new credit facility replaces a previous one that was fully repaid in November 2006.

Frequently Asked Questions

The primary purpose of the $250 million senior secured revolving credit facility is to provide Crown Castle International Corp. with financial flexibility for general corporate purposes. This may include funding capital expenditures, pursuing strategic acquisitions, and repurchasing the company's own securities.

The credit facility is secured by a pledge of equity interests in certain existing and future subsidiaries of Crown Castle International Corp. This includes subsidiaries involved in the planned acquisition of Global Signal Inc. Additionally, security interests are granted in the borrower's deposit and securities accounts.

Yes, the credit facility requires Crown Castle International Corp., its subsidiary borrower, and certain other subsidiaries to maintain compliance with specific financial covenants. There are also restrictions on activities such as incurring additional debt and liens, purchasing company securities, making capital expenditures, disposing of assets, and paying dividends. The availability of funds is also tied to certain financial ratios.

As of January 10, 2007, the credit facility remained undrawn, indicating that the company had not yet utilized the available credit line.