American Tower has priced its US$1.8bn offering of secured tower revenue securities that will be used to repay debt.
The proceeds will pay off all the outstanding debt backing its current US$1.75bn mortgage-backed securities portfolio issued in 2007,…
American Tower has priced its US$1.8bn offering of secured tower revenue securities that will be used to repay debt.
The proceeds will pay off all the outstanding debt backing its current US$1.75bn mortgage-backed securities portfolio issued in 2007, the towerco said in a statement.
The new securities are backed by the debt of two special-purpose subsidiaries with the mortgages of 5,195 towers serving as collateral.
Barclays and Morgan Stanley were bookrunners according to Dow Jones.
American Tower sold the securities in two tranches in a private transaction. The first portion is called Series 2013-1 and is for US$500m at an interest rate of 1.55%. It has an expected life of approximately five years and a final maturity of March 2043.
The Series 2013-2 is for US$1.3bn and interest is set at 3.07%. American Tower anticipates its expected life will be roughly ten years and said it will mature in March 2048.
Speaking at an investment conference at the start of the week the towerco’s CFO Thomas Bartlett said the “rate environment looked attractive and we’re in the market”, describing the tap as being “opportunistic”.
Ratings agency Fitch gave the proposed offering a AAA rating.
American Tower has a portfolio of close to 55,000. Its focus is the Americas but it also owns assets in Germany, India and a number of African states.
