US towerco Crown Castle has priced two tranches of notes totalling US$1.5bn.
The first portion, for US$500m, carries interest of 2.381%, priced at par and matures in 2017.
The second issuance was for US$1bn and also priced at par. It reaches maturity…
US towerco Crown Castle has priced two tranches of notes totalling US$1.5bn.
The first portion, for US$500m, carries interest of 2.381%, priced at par and matures in 2017.
The second issuance was for US$1bn and also priced at par. It reaches maturity in 2023 and has a coupon of 3.36%.
The offering is expected to close on 24 December and comes via CC Holdings GS V, which holds towers acquired from Global Signal in 2007.
Crown Castle said the purpose of the offering was to extend debt maturities and reduce annual interest expense.
It will use the proceeds of the issuance for a tender offer to buy back an unspecified amount of debt. It will first tender for its 7.75% notes due 2017, and then its 9% notes due 2015.
Morgan Stanley, Barclays, JP Morgan and BofA Merrill Lynch have been mandated to handle the buyback.
Crown Castle has also received preliminary commitments to add US$500m on to its revolving credit facility.
The towerco said the steps it is taking will reduce its annualised consolidated cash interest by US$85m.
The towerco completed its US$2.4bn acquisition of towers from T-Mobile USA at the end of last week.
Crown Castle operates more than 30,000 towers in the US.
