Published on 11/17/2020 in the Prospect News Investment Grade Daily.
New Issue: American Tower prices $1.7 billion of senior notes in three tranches
By Cristal Cody
Tupelo, Miss., Nov. 17 – American Tower Corp. priced $1.7 billion of senior notes (Baa3/BBB-/BBB+) in three tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 0.6% notes due Jan. 15, 2024 at 99.825 to yield 0.656%, or a spread of 43 basis points over Treasuries.
American Tower priced $650 million of 1.5% notes due Jan. 31, 2028 at 99.971 to yield 1.504%, or a Treasuries plus 87.5 bps spread.
A $550 million tranche of 2.95% notes due Jan. 15, 2051 priced with a Treasuries plus 137.5 bps spread. The notes were sold at 98.93 to yield 3.004%.
Barclays, Mizuho Securities USA Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay debt, including under the company’s 2019 credit facility, and for general corporate purposes.
American Tower is a telecommunications provider based in Boston.
| Issuer: | American Tower Corp.
|
| Amount: | $1.7 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Mizuho Securities USA Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and TD Securities (USA) LLC
|
| Senior co-managers: | BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., Commerz Markets LLC, EA Markets Securities LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc. and SG Americas Securities, LLC
|
| Co-managers: | ING Financial Markets LLC and Standard Chartered Bank
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2024
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2024
|
| Coupon: | 0.6%
|
| Price: | 99.825
|
| Yield: | 0.656%
|
| Spread: | Treasuries plus 43 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Notes due 2028
|
| Amount: | $650 million
|
| Maturity: | Jan. 31, 2028
|
| Coupon: | 1.5%
|
| Price: | 99.971
|
| Yield: | 1.504%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Nov. 30, 2027; thereafter at par
|
|
|
| Notes due 2051
|
| Amount: | $550 million
|
| Maturity: | Jan. 15, 2051
|
| Coupon: | 2.95%
|
| Price: | 98.93
|
| Yield: | 3.004%
|
| Spread: | Treasuries plus 137.5 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before July 15, 2050; thereafter at par
|
|
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