American Tower is planning to offer 4.25 million mandatory convertible preferred shares to repay the debt it drew from its revolver for a recent acquisition.
In its Q1 results released on Friday the US tower giant announced the acquisition of 60 sites…
American Tower is planning to offer 4.25 million mandatory convertible preferred shares to repay the debt it drew from its revolver for a recent acquisition.
In its Q1 results released on Friday the US tower giant announced the acquisition of 60 sites and other assets from Richland Properties for US$386m, which included taking on US$196.5m of its secured debt.
American Tower initially funded the purchase by drawing debt from its multi-currency US$2bn senior unsecured revolving credit facility.
Goldman Sachs, BofA Merrill Lynch, Barclays and JP Morgan are the joint book-running managers for the offering. American Tower has given the underwriters a greenshoe option whereby they can purchase an additional 637,500 shares if they wish.
In a memo to investors Wells Fargo analyst Jennifer Fritzsche said it was common for a Reit like American Tower to fund a deal on their respective equity line and raise equity later.
“With the stock up 8.3% since [1 April] (vs. S&P roughly flat) during the same period, we believe the company was being opportunistic given the current strength in its equity,” she wrote.
American Tower last secured financing in January when it raised US$750m by reopening two bonds it initially offered last year.
American Tower owns and operates 68,000 sites, primarily across the US, but also in Brazil, Chile, Colombia, Costa Rica, Germany, Ghana, India, Mexico, Panama, Peru, South Africa and Uganda.
