American Tower Corporation Prices Senior Notes Offering

Rhea-AI Summary

American Tower (NYSE: AMT) announced the pricing of its registered public offering of senior unsecured notes due in 2030 and 2034. The total principal amounts are €500.0 million (approximately $543.5 million) for each set of notes. The 2030 notes will have an interest rate of 3.900% per annum and are priced at 99.622% of their face value, while the 2034 notes will have an interest rate of 4.100% per annum and are priced at 99.306% of their face value.

The net proceeds are expected to be €988.4 million (approximately $1,074.2 million) after deducting underwriting discounts and estimated offering expenses. The proceeds will be used to repay existing indebtedness under its $6.0 billion senior unsecured multicurrency revolving credit facility, and its €825.0 million unsecured term loan. The offering is managed by Banco Santander, S.A., Barclays Bank PLC, Citigroup Global Markets , J.P. Morgan Securities plc, and Mizuho International plc.

Positive

• Successful pricing of senior unsecured notes due 2030 and 2034.
• Net proceeds expected to be approximately $1,074.2 million.
• Diversifies debt repayment by using proceeds to repay existing indebtedness.
• Interest rates are relatively low at 3.900% for 2030 notes and 4.100% for 2034 notes.
• Involvement of reputable financial institutions as joint book-running managers.

Negative

• Issuing debt may increase financial leverage.
• Proceeds used primarily for debt repayment rather than new investments.
• Pricing of notes below face value (99.622% and 99.306%).

BOSTON--(BUSINESS WIRE)-- American Tower Corporation (NYSE: AMT) today announced the pricing of its registered public offering of senior unsecured notes due 2030 and 2034 in aggregate principal amounts of €500.0 million (approximately $543.5 million) and €500.0 million (approximately $543.5 million), respectively. The 2030 notes will have an interest rate of 3.900% per annum and are being issued at a price equal to 99.622% of their face value. The 2034 notes will have an interest rate of 4.100% per annum and are being issued at a price equal to 99.306% of their face value.

The net proceeds of the offering are expected to be €988.4 million (approximately $1,074.2 million), after deducting underwriting discounts and estimated offering expenses. American Tower intends to use the net proceeds to repay existing indebtedness under its $6.0 billion senior unsecured multicurrency revolving credit facility, as amended and restated in December 2021, as further amended, to the extent it has been drawn upon in euros to, among other things, repay existing indebtedness under its €825.0 million unsecured term loan, as amended in December 2021.

Banco Santander, S.A., Barclays Bank PLC, Citigroup Global Markets Limited, J.P. Morgan Securities plc and Mizuho International plc are acting as Joint Book-Running Managers for the offering.

This press release shall not constitute an offer to sell or a solicitation to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made only by means of a prospectus and related prospectus supplement, which may be obtained by visiting the Securities and Exchange Commission’s website at www.sec.gov. Alternatively, you may request these documents by calling Banco Santander, S.A. at +34-91-257-2029, Barclays Bank PLC at 1-888-603-5847 (toll-free), Citigroup Global Markets Limited at 1-800-831-9146, J.P. Morgan Securities plc at +44-20-7134-2468 (Non-US investors), or J.P. Morgan Securities LLC collect at +1-212-834-4533 (US investors), or Mizuho International plc at +44-20-7090-6698.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities. For more information about American Tower, please visit the “Earnings Materials” and “Investor Presentations” sections of our investor relations hub at www.americantower.com.

Cautionary Language Regarding Forward-Looking Statements

This press release contains “forward-looking statements” concerning the Company’s goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Actual results may differ materially from those indicated in the Company’s forward-looking statements as a result of various factors, including those factors set forth under the caption “Risk Factors” in Item 1A of its most recent annual report on Form 10-K, and other risks described in documents the Company subsequently files from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522921627/en/

Adam Smith

Senior Vice President, Investor Relations and FP&A

Telephone: (617) 375-7500

Source: American Tower Corporation

FAQ

What is the interest rate for American Tower's 2030 notes?

The interest rate for American Tower's 2030 notes is 3.900% per annum.

What is the interest rate for American Tower's 2034 notes?

The interest rate for American Tower's 2034 notes is 4.100% per annum.

What is the total principal amount for the American Tower senior notes offering?

The total principal amount for the American Tower senior notes offering is €1 billion (approximately $1.087 billion).

How will American Tower use the proceeds from the senior notes offering?

American Tower intends to use the proceeds to repay existing indebtedness under its $6.0 billion senior unsecured multicurrency revolving credit facility and its €825.0 million unsecured term loan.

Who are the joint book-running managers for American Tower's senior notes offering?

The joint book-running managers are Banco Santander, S.A., Barclays Bank PLC, Citigroup Global Markets , J.P. Morgan Securities plc, and Mizuho International plc.

What is the expected net proceeds amount from the senior notes offering?

The expected net proceeds amount from the senior notes offering is approximately $1,074.2 million.

What are the issue prices for American Tower's 2030 and 2034 notes?

The 2030 notes are issued at 99.622% of their face value, and the 2034 notes are issued at 99.306% of their face value.