Crown Castle to raise $1.25bn in senior notes
Crown Castle International has announced that it has priced its senior notes offering at $750 million and $500 million, respectively.
The news follows the company’s previously announced public offering of 3.300% Senior Notes due 2030 and 4.150% Senior Notes due 2050.
In terms of interest, the notes due 2030 will have an interest rate of 3.300% per annum at a price equal to 99.179% of their face value to yield 3.396%. While the notes due 2050 will have an interest rate of 4.150% per annum at a price equal to 98.9% of their face value to yield 4.215%.
Crown Castle is set to make $1.225 billion in net proceeds which will be used to “repay outstanding indebtedness under its existing revolving credit facility”.
The news follows the company’s 2019 financial results. Net revenues for the year came in at $863 million, while Adjusted EBITDA came in at $3,304 million.
"In 2019, we experienced our highest level of tower leasing activity in more than a decade as the continued growth in mobile data demand is driving our customers to make significant investments in their existing 4G networks, while they are also positioning their businesses for 5G," said Jay Brown (pictured), chief executive officer at Crown Castle.
"Further, we delivered another strong year of results for full year 2019 despite a noticeable slowdown in activity in the fourth quarter of 2019. We anticipate that this slowdown is temporary in nature and see a return to significant activity in the second half of this year.”
Looking ahead Crown Castle has forecast its 2020 full year net income at between $998 to $1,078 million, with adjusted EBITDA at between $3.479 million to $3.524 million.
“As we look forward to what will likely be another decade-long investment cycle for our customers with the deployment of 5G, I am excited about the opportunity we see for Crown Castle to deliver long-term value to our shareholders while delivering dividend per share growth of 7% to 8% per year."