US towerco Crown Castle is planning a senior secured note offering tied to tower revenues to refinance existing debt.
Certain special purpose subsidiaries intend to offer a yet-to-be-determined amount of senior secured tower revenue notes as additional…
US towerco Crown Castle is planning a senior secured note offering tied to tower revenues to refinance existing debt.
Certain special purpose subsidiaries intend to offer a yet-to-be-determined amount of senior secured tower revenue notes as additional debt securities under an existing indenture dated 1 June 2005, the company said in a statement.
The servicing and repayment of the notes would come only from the cash flow of the towers linked to the transaction.
Specifically, Crown Castle plans to use the proceeds of the potential offering to retire series 2010-4 notes issued under the 2005 indenture, pay associated fees and expenses, and for general corporate purposes.
Crown Castle reported net debt of US$11.83bn at the end of Q1 2015 and a net debt to first quarter annualised adjusted EBITDA ratio of 5.3x. As of 31 March, the company said its outstanding debt had a weighted average coupon of 4.1% per annum and a weighted average maturity of six years.
The Texas-based company describes itself as the US’ largest provider of shared wireless infrastructure with about 40,000 towers and 14,000 small cell nodes supported by 7,000 miles of fibre.
In February, the company revealed that it is exploring a potential sale of its 77.6% in Australian towerco CCAL, having received unsolicited offers. CCAL operates 1,800 sites across Australia.
