By Paul A. Harris
St. Louis, Jan. 22 - American Tower Corp. slightly upsized its zero-coupon units offering to $420 million from $400 million and priced them at 51.966 to yield 12¼%, according to a syndicate source.
The offering consists of units comprised of a senior subordinated discount note (B3/CCC+) and a warrant. The warrants are for 5.5% of the company's equity.
Credit Suisse First Boston was the bookrunner. Goldman, Sachs & Co. was co-manager.
Proceeds from the Rule 144A deal will be temporarily placed in escrow pending an amendment to American Tower's credit facility. Assuming that is obtained, they will then be used to reduce term loans outstanding under the credit facilities and to repurchase the company's 2¼% convertible notes.
The issuer is a Boston-based tower operator.
Issuer: American Tower Corp
| Amount: | $420 million (proceeds), $808 million (face)
|
| Maturity: | Feb. 1, 2008
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| Security description: | Units comprised of senior subordinated discount notes and warrants
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| Manager: | Credit Suisse First Boston
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| Co-manager: | Goldman Sachs & Co.
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| Coupon: | None
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| Price: | 51.966
|
| Yield: | 12¼%
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| Spread: | 924 basis points
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| Warrants: | For 5.5% of equity
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| Call features: | Callable on Feb. 1, 2006 at par plus one-half the coupon, on Feb. 1, 2007 at par plus one-quarter of the coupon
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| Settlement date: | Jan. 29, 2003 (T+5)
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| Ratings: | Moody's: B3
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| Standard & Poor's: CCC+
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