Summary
Crown Castle International Corp. (CCI) announced the closing of a registered public offering of $500 million aggregate principal amount of 4.000% Senior Notes due 2027, which occurred on February 2, 2017. The net proceeds from this offering are intended to be used to repay a portion of the outstanding borrowings under the Company's senior unsecured revolving credit facility. This move suggests a strategic effort to refinance existing debt with longer-term, fixed-rate obligations. The senior notes are unsecured and rank equally with existing senior indebtedness but are subordinated to secured debt and structurally subordinated to subsidiary obligations. Key terms include semi-annual interest payments, specific maturity in March 2027, and provisions for redemption at the Company's option with a potential 'make-whole' premium under certain conditions. The indenture also includes covenants restricting liens and mergers, and a provision for noteholders to require repurchase in the event of a Change of Control Triggering Event.
Key Highlights
- 1Successfully closed a $500 million offering of 4.000% Senior Notes due March 1, 2027.
- 2Proceeds will be used to reduce outstanding borrowings under the company's senior unsecured revolving credit facility.
- 3Notes are senior unsecured obligations, ranking equally with existing senior debt and senior to subordinated debt.
- 4Notes are structurally subordinated to liabilities of Crown Castle's subsidiaries.
- 5Semi-annual interest payments of 4.000% are due on March 1 and September 1, starting September 1, 2017.
- 6Company has the option to redeem notes prior to maturity, potentially with a 'make-whole' premium before December 1, 2026.
- 7Indenture includes covenants related to liens, mergers, and a change of control repurchase option for noteholders.