American Tower gets $1.3 billion one-year loan at Libor plus 80 bps

By Angela McDaniels

Tacoma, Wash., Feb. 14 – American Tower Corp. borrowed a $1.3 billion term loan due Feb. 13, 2020 on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Mizuho Bank, Ltd. is administrative agent, joint lead arranger and joint bookrunner. Bank of Nova Scotia and TD Securities (USA) LLC are co-syndication agents, joint lead arrangers and joint bookrunners.

The initial interest rate is Libor plus 80 basis points. The margin ranges from 55 bps to 137.5 bps based on the company’s debt ratings.

The company used the proceeds, together with cash on hand, to repay existing debt under its $1.5 billion term loan.

The term loan does not require amortization of principal and may be paid prior to maturity in whole or in part at the company’s option without penalty or premium.

The term loan agreement includes financial covenants that require the company to maintain a total leverage ratio of not more than 6 to 1 (or not more than 7 to 1 for specified time periods after a qualified acquisition) and a senior secured leverage ratio of not more than 3 to 1 for the company and its subsidiaries.

If the company’s debt ratings fall to below investment grade, it must also maintain an interest coverage ratio of not less than 2.5 to 1.0 for the company and its subsidiaries.

American Tower is a Boston-based real estate investment trust with a focus on multitenant communications real estate.

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