US towerco American Tower has priced its previously-announced offering of 23.5 million common shares and 12.5 million depositary shares at US$97 and US$100 per share respectively.
The underwriters have a greenshoe option to purchase up to an additional…
US towerco American Tower has priced its previously-announced offering of 23.5 million common shares and 12.5 million depositary shares at US$97 and US$100 per share respectively.
The underwriters have a greenshoe option to purchase up to an additional 2.35 million common shares and up to 1.25 million extra depositary shares.
The towerco expects to raise about US$2.22bn from the sale of the common shares and US$1.2bn from the sale of the depository shares, or more if the underwriters exercise their overallotment option.
The proceeds will be used to finance the company’s tower deal with Verizon Communications, along with cash on hand and borrowings under its revolving credit facilities.
In early February, American Tower agreed to acquire the rights to 11,324 wireless towers owned by Verizon and to buy an additional 165 towers for US$5bn. American Tower will have the right to use the towers for 28 years with a call option after the lease expires.
Goldman Sachs is leading the offering. BofA Merrill Lynch, Barclays, Citigroup and JP Morgan are also acting as joint book-running managers on the common stock offering, while RBC Capital Markets, Morgan Stanley, RBS and TD Securities are serving as joint book-running managers on the depositary shares offering.
If the transaction with Verizon is not completed, the towerco said it will use the proceeds to finance other transactions, such as its acquisitions of infrastructure from TIM Brasil and Bharti Airtel, or debt repayments.
