Published on 1/8/2016 in the Prospect News Investment Grade Daily.
New Issue: American Tower sells $1.25 billion of five-, 10-year senior notes
By Aleesia Forni
New York, Jan. 8 – American Tower Corp. sold a $1.25 billion two-part offering of senior notes (Baa3/BBB-/BBB) during Friday’s session, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $750 million tranche of 3.3% five-year notes priced with a 175 basis point spread over Treasuries. The issue sold at 99.853 to yield 3.331%.
And a $500 million tranche of 4.4% 10-year bonds priced at 99.713 to yield 4.435%, or Treasuries plus 230 bps.
Both tranches came at the tightest side of price guidance.
BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.
Proceeds will be used to repay debt under an existing credit facility and for general corporate purposes.
The owner and operator of communications towers is based in Boston.
| Issuer: | American Tower Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Senior co-managers: | Barclays, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., EA Markets Securities LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Co-managers: | Commerz Markets LLC, Evercore Group LLC, Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Santander Investment Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc.
|
| Trade date: | Jan. 8
|
| Settlement date: | Jan. 12
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2021
|
| Coupon: | 3.3%
|
| Price: | 99.853
|
| Yield: | 3.331%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 180 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Jan. 15, 2021, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 4.4%
|
| Price: | 99.713
|
| Yield: | 4.435%
|
| Spread: | Treasuries plus 230 bps
|
| Price guidance: | Treasuries plus 235 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to Nov. 15, 2025, then callable at par
|
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