By Rebecca Melvin
New York, May 7 - American Tower Corp. priced an upsized $510 million of series A mandatory convertible preferred stock at par to yield 5.25% with an initial conversion premium of 25% on Tuesday, according to a pricing term sheet.
The registered deal was for 5.25 million preferred shares, with a liquidation preference of $100 each, and there is a $70 million over-allotment option. Originally the deal was talked at a $425 million base deal and a $63.75 million greenshoe.
Proceeds will be used to fund recent acquisitions, including Richland Properties LLC and other related entities initially funded by debt. Remaining proceeds will be used for general corporate purposes.
Goldman Sachs & Co., BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC were the joint bookrunning managers of the offering.
The three-year mandatories mature on May 15, 2017. Holders of the preferred shares can choose to covert prior to the conversion date upon the occurrence of a fundamental change.
The preferreds will be listed on the New York Stock Exchange under the ticker symbol "AMTPA."
Boston-based American Tower manages, develops and leases communications and broadcast tower sites.
| Issuer: | American Tower Corp.
|
| Issue: | Mandatory convertible preferred stock
|
| Amount: | $510 million (5.25 million shares), upsized from $425 million
|
| Greenshoe: | $70 million (750,000 shares), upsized from $63.75 million
|
| Maturity: | May 15, 2017
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC
|
| Distribution rate: | 5.25%
|
| Price: | Par, $100
|
| Premium: | 25%
|
| Threshold appreciation price: | $109.00
|
| Maximum settlement rate: | 1.1468
|
| Minimum settlement rate: | 0.9174
|
| Takeover protection: | Yes
|
| Price talk: | 5.25%, up 25%
|
| Pricing date: | May 6
|
| Settlement date: | May 12
|
| Stock symbol: | NYSE: AMT
|
| Preferred stock symbol: | NYSE: AMTPA
|
| Stock reference price: | $87.20
|
| Market capitalization: | $34.46 billion
|
| Distribution: | Registered
|
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