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Item 1.01
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Entry into a Material Definitive Agreement.
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On September 30, 2016, American Tower
Corporation (the “Company”) completed a registered public offering of $600.0 million aggregate principal amount of its 2.250% senior unsecured notes due 2022 (the “2022 notes”) and $400.0 million aggregate principal amount of its
3.125% senior unsecured notes due 2027 (the “2027 notes” and, collectively with the 2022 notes, the “Notes”), which resulted in aggregate net proceeds to the Company of approximately $990.6 million, after deducting commissions
and estimated expenses. The Company intends to use all of the net proceeds to repay existing indebtedness under its term loan entered into in October 2013, as amended.
The Company issued the Notes under an indenture dated as of May 23, 2013 (the “Base Indenture”), as supplemented by a
supplemental indenture dated as of September 30, 2016 (“Supplemental Indenture No. 6” and, together with the Base Indenture, the “Indenture”), each between the Company and U.S. Bank National Association, as trustee (the
“Trustee”). The following description of the Indenture is a summary and is qualified in its entirety by reference to the detailed provisions of the Indenture.
The 2022 notes will mature on January 15, 2022 and bear interest at a rate of 2.250% per annum. The 2027 notes will mature on
January 15, 2027 and bear interest at a rate of 3.125% per annum. Accrued and unpaid interest on the Notes will be payable in U.S. Dollars semi-annually in arrears on January 15 and July 15 of each year, beginning on
January 15, 2017. Interest on the Notes will accrue from September 30, 2016 and will be computed on the basis of a 360-day year comprised of twelve 30-day months. The terms of the Indenture, among other things, limit the Company’s
ability to merge, consolidate or sell assets and the Company’s and its subsidiaries’ abilities to incur liens. These covenants are subject to a number of exceptions, including that the Company and its subsidiaries may incur liens on
assets, mortgages or other liens securing indebtedness, provided the aggregate amount of such liens shall not exceed 3.5x Adjusted EBITDA as defined in the Indenture.
The Company may redeem the Notes at any time, in whole or in part, at its election at the applicable redemption price. If the Company redeems
the 2022 notes prior to their maturity date or the 2027 notes prior to October 15, 2026, the Company will pay a redemption price equal to 100% of the principal amount of the notes being redeemed plus a make-whole premium, together with accrued
interest to the redemption date. If the Company redeems the 2027 notes on or after October 15, 2026, the Company will pay a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest to the
redemption date. In addition, if the Company undergoes a Change of Control and Ratings Decline, each as defined in the Indenture, the Company may be required to repurchase all of the Notes at a purchase price equal to 101% of the principal amount of
the Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date.
The
Indenture provides that each of the following is an event of default (“Event of Default”): (i) default for 30 days in payment of any interest due with respect to the Notes; (ii) default in payment of principal or premium, if any,
on the Notes when due, at maturity, upon any redemption, by declaration or otherwise; (iii) failure by the Company to comply with covenants in the Indenture or Notes for 90 days after receiving notice; and (iv) certain events of bankruptcy
or insolvency with respect to the Company or any of its Significant Subsidiaries. If any Event of Default arising under clause (iv) above occurs, the principal amount and accrued and unpaid interest on all the outstanding Notes will become due
and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in principal amount of the then outstanding Notes may declare the entire principal amount on
all the outstanding Notes to be due and payable immediately.
The foregoing is only a summary of certain provisions and is qualified in
its entirety by the terms of the Base Indenture, as filed with the Securities and Exchange Commission on May 23, 2013 as an exhibit to the Company’s Registration Statement on Form S-3 (No. 333-188812), and incorporated by reference as an
exhibit to the Company’s Registration Statement on Form S-3 (No. 333-211829), and the Supplemental Indenture No. 6, a copy of which is filed herewith as Exhibit 4.1, and incorporated by reference herein.