Summary
Crown Castle International Corp. (CCI) announced on May 15, 2015, through its subsidiary Crown Castle Towers LLC and certain other direct subsidiaries, the issuance of $1 billion in Senior Secured Tower Revenue Notes. This issuance comprises two new series: Series 2015-1 ($300 million at 3.222%) and Series 2015-2 ($700 million at 3.663%). These notes are secured by cash flows from the company's tower sites and are guaranteed by CC Towers Guarantor LLC, an indirect wholly owned subsidiary. The net proceeds from this offering were used to repay the Series 2010-4 Notes and cover related fees and expenses, with any remaining proceeds allocated for general corporate purposes.
Key Highlights
- 1Issuance of $1 billion in Senior Secured Tower Revenue Notes by subsidiaries.
- 2Notes consist of two new series: Series 2015-1 ($300M, 3.222% interest) and Series 2015-2 ($700M, 3.663% interest).
- 3Maturity dates are May 15, 2042, for Series 2015-1 and May 15, 2045, for Series 2015-2.
- 4Notes are secured by cash flows from tower sites and are obligations solely of the Issuers and the Guarantor.
- 5Proceeds used to repay Series 2010-4 Notes and for general corporate purposes.
- 6Covenants include a Debt Service Coverage Ratio (DSCR) requirement for issuing additional notes (2.0x) and for avoiding an Amortization Period (below 1.45x).
- 7Cash Trap Conditions may arise if DSCR is 1.75x or less, impacting cash flow allocation.
Frequently Asked Questions
This Form 8-K filing announces Crown Castle International Corp.'s entry into a material definitive agreement regarding the issuance of $1 billion in Senior Secured Tower Revenue Notes by its subsidiaries. It also details the creation of a direct financial obligation.
The net proceeds from the issuance of these notes were used to repay in full the Series 2010-4 Notes, cover fees and expenses related to the offering and the retirement of the 2010-4 Notes, and the remaining proceeds were transferred to the Company for general corporate purposes.
No, the notes are guaranteed solely by CC Towers Guarantor LLC, an indirect wholly owned subsidiary of Crown Castle International Corp., and are not guaranteed by Crown Castle International Corp. or any other affiliate other than the Guarantor.
Key financial covenants include maintaining a Debt Service Coverage Ratio (DSCR) of at least 2.0x to issue additional notes and a ratio below 1.45x to trigger an Amortization Period. A Cash Trap Condition occurs if the DSCR is 1.75x or less, affecting cash flow distribution.