8-KMaterial AgreementsOther EventsExhibits & Filings

CROWN CASTLE INC. 8-K Report, Material Agreement (Dec 17, 2012)

Filed December 17, 2012For Securities:CCI

Summary

Crown Castle Inc. (CCI) announced an amendment to its existing credit agreement, significantly bolstering its financial flexibility. On December 13, 2012, through its wholly-owned subsidiary Crown Castle Operating Company, the company entered into an Incremental Facility Amendment. This amendment increases the aggregate revolving commitments under the Credit Agreement by $500 million, bringing the total to $1.5 billion. This expansion of credit facilities is strategically timed with the company's announced tender offer for its outstanding 9.0% Senior Notes due 2015. The increased revolving credit and proceeds from a separate senior secured notes offering are intended to finance this tender offer. Investors should view this as a proactive move by management to manage its debt structure and potentially refinance existing obligations on more favorable terms or with extended maturity.

Key Highlights

  • 1Incremental Facility Amendment increased aggregate revolving commitments by $500 million.
  • 2Total aggregate revolving commitments under the Credit Agreement are now $1.5 billion.
  • 3The amendment was entered into on December 13, 2012.
  • 4The increased borrowing capacity is intended to finance a tender offer for the company's 9.0% Senior Notes due 2015.
  • 5The financing for the tender offer also includes proceeds from a previously announced $1.5 billion senior secured notes offering.
  • 6This action demonstrates proactive debt management and refinancing efforts by Crown Castle.

Frequently Asked Questions

The main purpose of the Incremental Facility Amendment is to increase Crown Castle's borrowing capacity under its existing credit facility by $500 million, bringing the total to $1.5 billion. This expanded facility is intended to help finance a tender offer for the company's outstanding 9.0% Senior Notes due 2015.

This filing is part of a broader strategy to manage the company's debt. The increased revolving credit, along with proceeds from a separate notes offering, is aimed at repurchasing existing senior notes. This could lead to a refinancing of debt, potentially extending maturities or securing more favorable interest rates.

The key parties include Crown Castle Operating Company (the Borrower), Crown Castle International Corp. (the Company), various subsidiaries, the lenders party to the agreement, The Royal Bank of Scotland plc (as administrative agent), Merrill Lynch, Pierce, Fenner & Smith Incorporated (as syndication agent), and Morgan Stanley Senior Funding Inc. (as co-documentation agent).