8-KMaterial AgreementsRegulation FDOther Events+1

CROWN CASTLE INC. 8-K Report, Material Agreement (Apr 2, 2014)

Filed April 2, 2014For Securities:CCI

Summary

Crown Castle International Corp. (CCI) filed an 8-K report on April 2, 2014, detailing significant financing activities. The company announced the issuance of $850 million in 4.875% Senior Notes due 2022 through an underwriting agreement with Barclays Capital Inc. This offering was conducted under an existing shelf registration statement, indicating a strategic move to raise capital. In conjunction with this new debt issuance, CCI also announced the redemption of its entire $500 million outstanding principal amount of 7.125% Senior Notes due 2019. The redemption is scheduled for May 2, 2014, and will include a make-whole premium, suggesting an effort to refinance existing debt at potentially more favorable terms or to optimize the company's capital structure.

Key Highlights

  • 1Issuance of $850 million aggregate principal amount of 4.875% Senior Notes due 2022.
  • 2Underwriting agreement entered into with Barclays Capital Inc. for the debt offering.
  • 3Offering conducted under a Form S-3 shelf registration statement.
  • 4Redemption of all outstanding $500 million principal amount of 7.125% Senior Notes due 2019.
  • 5Redemption date for the 7.125% Notes is May 2, 2014.
  • 6Redemption price includes principal, accrued interest, and a make-whole premium.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce two significant financing events: the issuance of $850 million in new senior notes and the redemption of $500 million in existing senior notes. This indicates strategic capital management and potential refinancing activities.

Crown Castle is issuing $850 million in aggregate principal amount of 4.875% Senior Notes due 2022. This offering was made through an underwriting agreement with Barclays Capital Inc.

While the exact reasons are not detailed, the redemption of the 7.125% Senior Notes, especially when simultaneously issuing new debt, often suggests an effort to refinance at a lower interest rate, improve the company's debt maturity profile, or reduce overall interest expense. The inclusion of a make-whole premium is standard in such early redemptions.

The $500 million of 7.125% Senior Notes due 2019 will be redeemed on May 2, 2014. The cost will include 100% of the principal amount, plus any accrued and unpaid interest up to the redemption date, and a make-whole premium calculated according to the note's indenture.