Published on 12/5/2023 in the Prospect News Investment Grade Daily.
New Issue: Crown Castle details $1.5 billion of senior notes due 2029, 2034
By Cristal Cody
Chicago, Dec. 5 – Crown Castle Inc. detailed the $1.5 billion sale of senior notes (Baa3/BBB/BBB+) in two tranches from Monday, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
A $750 million offering of 5.6% notes due June 1, 2029 priced at 99.661 to yield 5.673%, or at Treasuries plus 143 basis points. Price talk for the tranche was in the Treasuries plus 165 bps to 175 bps area.
A $750 million tranche of 5.8% notes due March 1, 2034 priced at 99.835 to yield 5.823%, or at Treasuries plus 153 bps, tighter than talk in the 180 bps area.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Barclays, BNP Paribas Securities Corp., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and Truist Securities, Inc. joined as bookrunners.
The company intends to use the proceeds from the offering to repay a portion of the outstanding debt under its commercial paper program.
Crown Castle is a Houston-based company that owns, operates and leases shared communications infrastructure.
| Issuer: | Crown Castle Inc.
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| Amount: | $1.5 billion
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| Issue: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Barclays, BNP Paribas Securities Corp., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and Truist Securities, Inc.
|
| Co-manager: | Huntington Securities, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP
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| Counsel to underwriters: | Skadden, Arps, Slate, Meagher & Flom LLP
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| Put option: | At 101 following a change of control
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| Trade date: | Dec. 4
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| Settlement date: | Dec. 6
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB+
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| Distribution: | SEC registered
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|
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| 2029 notes
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| Amount: | $750 million
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| Maturity: | June 1, 2029
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| Coupon: | 5.6%
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| Price: | 99.661
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| Yield: | 5.673%
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| Spread: | Treasuries plus 143 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps; one-month par call starting May 1, 2029
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| Price talk: | Treasuries plus 165 bps to 175 bps area
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| Cusip: | 22822VBD2
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|
|
| 2034 notes
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| Amount: | $750 million
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| Maturity: | March 1, 2034
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| Coupon: | 5.8%
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| Price: | 99.835
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| Yield: | 5.823%
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| Spread: | Treasuries plus 153 bps
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| Call: | Make-whole call at Treasuries plus 25 bps; three-month par call starting Dec. 1, 2033
|
| Price talk: | Treasuries plus 180 bps area
|
| Cusip: | 22822VBE0
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