Published on 8/14/2013 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: American Tower sells $1.25 billion crossover tranches due 2019, 2024
Virginia Beach, Va., Aug. 14 - American Tower Corp. priced a two-part $1.25 billion offering of senior notes (Baa2/BB+/BBB) during Wednesday's session, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.
The company sold $750 million 3.4% notes due 2019 with a spread of Treasuries plus 195 basis points, or 99.911 to yield 3.418%.
There was also $500 million 5% notes due 2024 priced with a spread of Treasuries plus 230 bps.
The notes priced at 99.888 to yield 5.014%.
The company plans to use proceeds to repay existing debt under its credit facilities, to finance recently announced acquisitions and for general corporate purposes.
BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities, Morgan Stanley & Co. LLC and TD Securities are the joint bookrunners.
The owner and operator of communications towers is based in Boston.
| Issuer: | American Tower Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC
|
| Senior co-managers: | Barclays, EA Markets Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, RBS Securities Inc., Santander Investment Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc.
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB
|
|
|
| 5.5-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2019
|
| Coupon: | 3.4%
|
| Price: | 99.911
|
| Yield: | 3.418%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | 195 bps to 200 bps spread, tightened from 215 bps area
|
| Make-whole call: | Treasuries plus 30 bps
|
|
|
| 10.5-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 5%
|
| Price: | 99.888
|
| Yield: | 5.014%
|
| Spread: | Treasuries plus 230 bps
|
| Price talk: | 230 bps to 235, tightened from 240 bps area
|
| Make-whole call: | Treasuries plus 35 bps
|
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