US towerco Crown Castle has completed a US$3.1bn credit facility, arranged by BofA Merrill Lynch, Morgan Stanley and RBS Securities.
The credit facility will consist of a US$1bn revolver maturing 2017, a US$500m delayed-draw senior secured loan due 2017…
US towerco Crown Castle has completed a US$3.1bn credit facility, arranged by BofA Merrill Lynch, Morgan Stanley and RBS Securities.
The credit facility will consist of a US$1bn revolver maturing 2017, a US$500m delayed-draw senior secured loan due 2017 (term loan A) and a US$1.6bn senior secured loan due 2019 (term loan B).
Crown Castle said that the US$1.6bn term loan B was fully drawn at closing, while the other two parts of the credit facility were undrawn.
The towerco added that term loan A may be drawn on or before 1 April.
The credit facility was completed by Crown Castle’s subsidiary, Crown Castle Operating Company (CCOC).
Loans under the term loan A and revolver will bear interest at a per annum rate equal to LIBOR plus 2%-2.75%, based on CCOC’s net leverage ratio. Loans under the term loan B would bear interest at a per annum rate equal to LIBOR plus 3%, with LIBOR subject to a floor of 1% per year.
Crown Castle said that the net proceeds of the credit facility had been used to repay existing debt and to fund the acquisition of ground-lease related assets from Wireless Capital Partners.
The company also expects to use the proceeds to fund the proposed US$1bn acquisition of NextG Networks.
The balance of the proceeds will be available for general corporate purposes.
