Published on 6/1/2020 in the Prospect News Investment Grade Daily.
New Issue: American Tower prices $2 billion of senior notes due 2025, 2030, 2050
By Cristal Cody
Tupelo, Miss., June 1 – American Tower Corp. priced $2 billion of senior notes (Baa3/BBB-/BBB+) in three parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 1.3% notes due Sept. 15, 2025 at 99.719 to yield 1.355%, or a spread of 105 basis points over Treasuries.
Initial price guidance was in the Treasuries plus 135 bps area.
A $750 million offering of 2.1% 10-year notes was sold at 99.425 to yield 2.164%. The notes priced with a spread of Treasuries plus 150 bps, tighter than talk in the 185 bps over Treasuries area.
American Tower brought $750 million of 3.1% 30-year notes at 99.014 to yield 3.151%, or a Treasuries plus 170 bps spread.
Initial guidance was in the 200 bps over Treasuries area.
Barclays, BBVA Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay debt, including under the company’s 2019 multicurrency credit facility and 2019 credit facility, and for general corporate purposes.
American Tower is a telecommunications provider based in Boston.
| Issuer: | American Tower Corp.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BBVA Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Senior co-managers: | BofA Securities, Inc., Citigroup Global Markets Inc., EA Markets Securities LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., Scotia Capital (USA) Inc. and SG Americas Securities, LLC
|
| Co-managers: | Commerz Markets LLC and ING Financial Markets LLC
|
| Trade date: | June 1
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2025
|
| Coupon: | 1.3%
|
| Price: | 99.719
|
| Yield: | 1.355%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Aug. 15, 2025 at greater of par and Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 135 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2030
|
| Coupon: | 2.1%
|
| Price: | 99.425
|
| Yield: | 2.164%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before March 15, 2030 at greater of par and Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 185 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2050
|
| Coupon: | 3.1%
|
| Price: | 99.014
|
| Yield: | 3.151%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call before Dec. 15, 2049 at greater of par and Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps area
|
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