8-KMaterial AgreementsFinancial EventsOther Events+1

CROWN CASTLE INC. 8-K Report, Material Agreement (Feb 8, 2016)

Filed February 8, 2016For Securities:CCI

Summary

Crown Castle International Corp. (CCI) filed an 8-K on February 8, 2016, reporting the closing of a significant debt offering. The company successfully issued $600 million in 3.400% Senior Notes due 2021 and $900 million in 4.450% Senior Notes due 2026, totaling $1.5 billion in aggregate principal amount. The primary purpose of this issuance was to refinance existing debt. Specifically, the net proceeds, along with existing cash, were used to fully repay borrowings under its $1.0 billion senior unsecured 364-day revolving credit facility and to reduce outstanding borrowings under its $2.5 billion senior unsecured revolving credit facility by $500 million. This strategic move aims to deleverage the company's short-term credit facilities and potentially improve its debt maturity profile and interest expense structure.

Key Highlights

  • 1Closed a public offering of $600 million of 3.400% Senior Notes due 2021 and $900 million of 4.450% Senior Notes due 2026.
  • 2Total aggregate principal amount of new notes issued is $1.5 billion.
  • 3Proceeds were used to repay in full outstanding borrowings under a $1.0 billion senior unsecured 364-day revolving credit facility.
  • 4Proceeds were also used to repay $500 million of outstanding borrowings under a $2.5 billion senior unsecured revolving credit facility.
  • 5The new notes are senior unsecured obligations, ranking equally with existing senior indebtedness.
  • 6The Indenture includes covenants that limit the ability to incur certain liens and merge with other companies.
  • 7A 'Change of Control Triggering Event' provision allows noteholders to require repurchase of notes at 101% of principal plus accrued interest.

Frequently Asked Questions

The primary purpose of this debt issuance was to refinance existing credit facilities. Crown Castle used the net proceeds to fully repay its $1.0 billion senior unsecured 364-day revolving credit facility and to repay $500 million of borrowings under its $2.5 billion senior unsecured revolving credit facility. This action helps manage its debt structure and potentially lowers short-term borrowing costs.

Crown Castle issued $600 million of 3.400% Senior Notes due February 15, 2021, and $900 million of 4.450% Senior Notes due February 15, 2026. Both notes are senior unsecured obligations and pay interest semi-annually.

The new notes are senior unsecured obligations of Crown Castle, ranking equally with all existing and future senior indebtedness. They are senior to any subordinated indebtedness but effectively rank junior to any secured indebtedness to the extent of the value of the collateral securing it. They are also structurally subordinated to the liabilities of Crown Castle's subsidiaries.

Yes, the Indenture includes a 'Change of Control Triggering Event' provision. If such an event occurs, noteholders have the right to require Crown Castle to repurchase their notes at 101% of the principal amount, plus any accrued and unpaid interest.