Published on 2/28/2023 in the Prospect News Investment Grade Daily.
New Issue: American Tower prices $1.5 billion of five-, 10-year senior notes
By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – American Tower Corp. priced $1.5 billion of fixed-rate senior notes (Baa3/BBB-/BBB+) in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $700 million of 5.5% five-year notes at 99.694 to yield 5.57%, or a spread of 140 basis points over Treasuries.
The issuer priced $800 million of 5.65% 10-year notes at 99.544 to yield 5.71%, or a spread over Treasuries of 180 bps.
Barclays, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the bookrunners.
Proceeds will be used to repay debt under the company’s credit facilities and for general corporate purposes.
American Tower is a telecommunications provider based in Boston.
| Issuer: | American Tower Corp.
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Barclays, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Scotia Capital (USA) 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, ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Santander US Capital Markets LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and Standard Chartered Bank
|
| Co-manager: | Standard Bank of South Africa Ltd.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and in-house
|
| Counsel to underwriters: | Sullivan & Worcester LLP
|
| Trade date: | Feb. 28
|
| Settlement date: | March 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $700 million
|
| Maturity: | March 15, 2028
|
| Coupon: | 5.5%
|
| Price: | 99.694
|
| Yield: | 5.57%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before Feb. 15, 2028 at greater of par and Treasuries plus 25 bps; at par thereafter
|
| Cusip: | 03027XBY5
|
|
|
| 10-year notes
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| Amount: | $800 million
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| Maturity: | March 15, 2033
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| Coupon: | 5.65%
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| Price: | 99.544
|
| Yield: | 5.71%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call before Dec. 15, 2032 at greater of par and Treasuries plus 30 bps; thereafter at par
|
| Cusip: | 03027XBZ2
|
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