Published on 3/29/2022 in the Prospect News Investment Grade Daily.
New Issue: American Tower prices $1.3 billion of five-, 10-year senior notes
By Wendy Van Sickle
Columbus, Ohio, March 29 – American Tower Corp. priced $1.3 billion of fixed-rate senior notes (Baa3/BBB-/BBB+) in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $650 million of 3.65% five-year notes at 99.517 to yield 3.758%, or a spread of Treasuries plus 127 basis points.
The issuer priced $650 million of 4.05% 10-year notes at 99.491 to yield 4.113%, or a spread over Treasuries of 172 bps.
The 2027 notes will have a make-whole call at Treasuries plus 20 bps until Feb. 15, 2027 and then are callable at par, and the 2032 notes will have a make-whole call at Treasuries plus 30 bps until Dec. 15, 2031 and then are callable at par.
J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc. are the bookrunners.
Proceeds will be used to repay debt under the company’s 2021 credit facility, its 2021 multicurrency credit facility and its 2021 term loan.
American Tower is a telecommunications provider based in Boston.
| Issuer: | American Tower Corp.
|
| Amount: | $1.3 billion
|
| Issue: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc.
|
| Senior co-managers: | Barclays, BBVA Securities Inc., Commerz Markets LLC, EA Markets Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc. SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Co-managers: | ING Financial Markets LLC, PNC Capital Markets LLC, Standard Chartered Bank and Standard Bank of South Africa Ltd.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and Sullivan & Worcester LLP
|
| Counsel to underwriters: | Shearman & Sterling LLP
|
| Trade date: | March 29
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 3.65%
|
| Price: | 99.517
|
| Yield: | 3.758%
|
| Spread: | Treasuries plus 127 bps
|
| Call features: | Make-whole call before Feb. 15, 2027 at greater of par and Treasuries plus 20 bps; at par thereafter
|
| Cusip: | 03027XBV1
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2032
|
| Coupon: | 4.05%
|
| Price: | 99.491
|
| Yield: | 4.113%
|
| Spread: | Treasuries plus 172 bps
|
| Call features: | Make-whole call before Dec. 15, 2031 at greater of par and Treasuries plus 30 bps; thereafter at par
|
| Cusip: | 03027XBW9
|
|
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