8-KMaterial AgreementsOther EventsExhibits & Filings

CROWN CASTLE INC. 8-K Report, Material Agreement (Aug 22, 2013)

Filed August 22, 2013For Securities:CCI

Summary

Crown Castle International Corp. (CCI) has filed a Form 8-K on August 22, 2013, to report on a material definitive agreement. Specifically, Crown Castle Operating Company, a subsidiary, entered into an Incremental Facility Amendment to its existing Credit Agreement. This amendment provides for $800 million in new incremental tranche B term loans, which mature on January 31, 2019, and bear interest at LIBOR plus a margin based on the company's leverage ratio. The primary use of these new funds was to prepay a portion of the company's existing $1.5 billion Senior Secured Revolving Credit Facility. Following this prepayment, approximately $229 million remains outstanding under the revolving credit facility. This action indicates a strategic move to refinance existing debt, potentially optimizing the company's capital structure and managing its liquidity.

Key Highlights

  • 1Crown Castle Operating Company, a subsidiary, entered into an Incremental Facility Amendment No. 2 to its Credit Agreement.
  • 2The amendment provides for $800 million in new incremental tranche B term loans.
  • 3These new loans mature on January 31, 2019, aligning with existing tranche B term loans.
  • 4Interest on the new loans is set at LIBOR plus a margin of 2.25% to 2.50%, dependent on the leverage ratio.
  • 5Proceeds were used to prepay a portion of the company's $1.5 billion Senior Secured Revolving Credit Facility.
  • 6Approximately $229 million remains outstanding on the revolving credit facility after the prepayment.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose a material definitive agreement, specifically an amendment to Crown Castle's Credit Agreement that introduces new debt financing.

Crown Castle raised $800 million through incremental tranche B term loans. These funds were used to prepay a portion of their existing revolving credit facility.

After using the proceeds from the new term loans to make a prepayment, approximately $229 million remains outstanding under the company's $1.5 billion Senior Secured Revolving Credit Facility.

The new incremental loans mature on January 31, 2019, and carry an interest rate of LIBOR plus a margin ranging from 2.25% to 2.50%, which is determined by the company's total net leverage ratio.