By Andrea Heisinger
New York, Dec. 2 - American Tower Corp. sold an upsized $1 billion of split-rated 4.5% seven-year senior notes on Thursday at a spread of Treasuries plus 215 basis points, said a source who worked on the trade.
The size was increased from $500 million at the launch. The notes were whispered in the 230 bps area, and then talk was revised to the 225 bps area. The deal priced tighter than that.
The notes (Baa3/BB+/BBB-) priced at 99.921 to yield 4.512%.
The notes have a make-whole call at 40 bps over Treasuries and feature a change-of-control put at 101%.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.
Proceeds will be used to finance acquisitions. This includes up to $200 million for the acquisition of towers from Cell C Pty. Ltd. and up to $500 million for proposed acquisitions in Latin America, including additional tranches of tower purchases in Colombia, Peru and Chile. Proceeds may also be used to repay a revolving credit facility if one is required.
The owner and manager for leasing communication and broadcast tower sites is based in Boston.
| Issuer: | American Tower Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, increased from $500 million
|
| Maturity: | Jan. 15, 2018
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 4.5%
|
| Price: | 99.921
|
| Yield: | 4.512%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 7
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Price talk: | 230 bps area (whispered), 225 bps area (revised)
|
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