American Tower looks to raise $425 million via sale of mandatory convertible preferred stock

By Stephanie N. Rotondo

Phoenix, May 5 - American Tower Corp. will price $425 million of series A mandatory convertible preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Monday.

The securities are expected to price Tuesday.

The convertible preferreds will have a liquidation preference of $100 each. There is a $63.75 million over-allotment option.

Goldman Sachs & Co., BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC are the joint bookrunning managers.

Dividends will be payable on the 15th day of February, May, August and December, beginning Aug. 15. The dividend will be cumulative and can be paid in cash or with common stock.

On May 15, 2017, the preferred shares will automatically convert into common shares based on the average volume weighted average price over 20 consecutive trading days prior to the conversion date.

Holders of the preferred shares can choose to covert prior to the conversion date upon the occurrence of a fundamental change.

The Boston-based company will apply to list the new securities on the New York Stock Exchange under the ticker symbol "AMTPA."

American Tower manages, develops and leases communications and broadcast tower sites.

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