American Tower Corporation (NYSE: AMT) announced today that it has
entered into an incremental term loan commitment for $325.0 million of
additional borrowing capacity pursuant to the Company’s
existing senior unsecured revolving credit facility (the “Revolver”).
The Company expects to receive net proceeds of approximately $321.7
million from the new incremental facility, which, together with
available cash will be used to repay $325.0 million of existing
indebtedness under the Revolver. As a result, the Company will have
approximately $650.0 million outstanding under the Revolver and the
capacity to borrow approximately $588.1 million.
The basis for determining interest rates for the incremental facility is
the same as that for the Revolver and is determined at the option of the
Company with the margin ranging between 0.50% to 1.50% above the LIBOR
rate for LIBOR based borrowings or between 0.00% to 0.50% above the
defined base rate for base rate borrowings, in each case based upon the
Company’s debt ratings. Based on the Company’s
current debt ratings, the interest rate for the incremental facility
will be LIBOR + 1.00%. The Company intends to enter into interest rate
swap agreements to fix the floating interest rate of the incremental
facility for a portion of the term of the facility, which has a maturity
date of June 8, 2012. The incremental facility does not require
amortization of principal and may be paid prior to maturity in whole or
in part at the Company’s option without
penalty or premium.
American Tower is a leading independent owner, operator and developer of
broadcast and wireless communications sites. American Tower owns and
operates over 22,800 sites in the United States, Mexico and Brazil. For
more information about American Tower, please visit www.americantower.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking
statements” that are based on management’s
current expectations and assumptions and that are not based on
historical facts. Examples of these statements include, but are not
limited to, statements regarding the Company’s
expectations for (i) the use of proceeds from the incremental facility
and (ii) the effect of the transactions described herein, including
effects on our financial flexibility. These forward-looking statements
involve a number of risks and uncertainties. Among the important factors
that could cause actual results to differ materially from those
indicated in such forward-looking statements include market conditions
for corporate debt generally, for the securities of telecommunications
companies and for the Company’s indebtedness
in particular. For other important factors that may cause actual results
to differ materially from those indicated in our forward-looking
statements, we refer you to the information contained in Item 1A of the
American Tower Corporation Form 10-K for the year ended December 31,
2007 under the caption “Risk Factors”
and in other filings we make with the Securities and Exchange
Commission. We undertake no obligation to update the information
contained in this press release to reflect subsequently occurring events
or circumstances.
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