American Tower to raise $1.5bn in senior notes offering

American Tower to raise $1.5bn in senior notes offering

10 January 2020 | Natalie Bannerman

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American Tower is set raise approximately $1,483 billion from the issuing of senior unsecured notes in 2025 and 2030.

The 2025 notes will have an interest rate of 2.400% per annum and being priced at 99.905% of their face value. Whereas the 2030 notes will have an interest rate of 2.900% per annum priced at 99.560% of their face value.

Both sets of note sales are set to raise $750 million each and will be used by American Tower to pay down its debts of $2.25 billion.

The company confirms that BofA Securities, Citigroup, JP Morgan, Morgan Stanley and Scotiabank are acting as joint book-running managers for the offering.

The news follows an announcement made by the company in December 2019, when it called for the redemption of all its outstanding 5.900% unsecured notes due by 2021.

At the time American Tower confirmed a redemption date of January 14 2020 will all notes to be redeemed at a price equal to the original amount of the notes plus a ‘make whole premium’. It is to be financed with ‘borrowings under its senior unsecured revolving credit facility’.

In related news American Tower was recently linked as potential buyers in two high profile sales. The first being Telecom Italia (TIM) and Vodafone in the sale of its Italian tower business and the second with Orange España (Orange Spain) and its $250 million tower sales in Spain.