Summary
Crown Castle International Corp. (CCI) reported on January 29, 2009, the closing of its public offering of $900 million principal amount of 9.00% Senior Notes due 2015. These notes are general obligations of the company, ranking equally with existing and future senior debt, but are effectively subordinated to liabilities of its subsidiaries. The issuance and terms of these notes are governed by an Indenture, which includes covenants that limit the company's and its restricted subsidiaries' ability to engage in various financial activities such as making restricted payments, incurring debt, issuing preferred stock, and entering into affiliate transactions. Investors should note the terms related to potential changes in control, where noteholders have the right to demand repurchase at 101% of the principal amount. The company retains the option to redeem the notes prior to maturity, with specific terms and premiums applicable for redemptions before January 15, 2013, and a standard redemption option thereafter. Additionally, up to 35% of the notes can be redeemed with proceeds from certain equity offerings until January 15, 2012.
Key Highlights
- 1Crown Castle International Corp. successfully closed a $900 million public offering of 9.00% Senior Notes due 2015 on January 27, 2009.
- 2The new notes are general senior obligations of the company and rank equally with other senior debt.
- 3The notes are effectively subordinated to all liabilities of Crown Castle's subsidiaries.
- 4The Indenture governing the notes imposes restrictions on the company and its restricted subsidiaries regarding restricted payments, incurring debt, issuing stock, and other financial actions.
- 5Holders of the 2015 Notes have a put option at 101% of par in the event of a Change of Control.
- 6The company has the option to redeem the notes early, with a 'make-whole' premium applicable before January 15, 2013.
- 7Up to 35% of the notes can be redeemed using proceeds from specific equity offerings before January 15, 2012.