Published on 4/1/2020 in the Prospect News Investment Grade Daily.
New Issue: Crown Castle details $1.25 billion of senior notes in two tranches
By Devika Patel
Knoxville, Tenn., April 1 – Crown Castle International Corp. offered further details about a $1.25 billion sale of senior notes (Baa3/BBB-/BBB) that priced in two tranches tighter than guidance on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $750 million of 3.3% 10-year notes at a spread of Treasuries plus 270 basis points. These notes priced at 99.179 to yield 3.396%.
The 10-year notes were initially talked at the 350 bps spread area with guidance tightened to the 280 bps area, plus or minus 5 bps.
A $500 million tranche of 4.15% 30-year notes priced with a Treasuries plus 285 bps spread. These notes priced at 98.9 to yield 4.215%.
The 30-year notes were talked at the Treasuries plus 362.5 bps area with guidance firmed to the 295 bps area, plus or minus 5 bps.
BofA Securities, Inc., Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank Capital Markets Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used repay borrowings under the company’s revolving credit facility and for general corporate purposes.
Houston-based Crown Castle provides shared wireless infrastructure to wireless carriers.
| Issuer: | Crown Castle International Corp.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank Capital Markets Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Co-managers: | Citizens Capital Markets, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | March 31
|
| Settlement date: | April 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | July 1, 2030
|
| Coupon: | 3.3%
|
| Price: | 99.179
|
| Yield: | 3.396%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until April 1, 2030, then a par call
|
| Price guidance: | Treasuries plus 280 bps area, plus or minus 5 bps; initial talk at Treasuries plus 350 bps area
|
|
|
| 30-year notes
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| Amount: | $500 million
|
| Maturity: | July 1, 2050
|
| Coupon: | 4.15%
|
| Price: | 98.9
|
| Yield: | 4.215%
|
| Spread: | Treasuries plus 285 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until Jan. 1, 2050, then a par call
|
| Price guidance: | Treasuries plus 295 bps area, plus or minus 5 bps; initial talk at Treasuries plus 362.5 bps area
|
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