American Towers noteholders tender nearly all 7¼% notes

By Angela McDaniels

Seattle, May 22 - American Tower Corp. said its subsidiary American Towers, Inc. received tenders and consents for $324.787 million, or 99.9%, of its $325 million 7¼% senior subordinated notes due 2011 during a tender offer that expired on May 18.

American Towers has accepted for purchase all of the tendered notes, resulting in a total payment of $349.5 million, including $10.2 million of accrued interest.

For each $1,000 principal amount of notes, the tender consideration was $1,044.56 plus accrued interest.

The payout included a $30.00 consent payment for each $1,000 principal amount of notes tendered by May 4, the consent deadline.

American Towers determined the payout using the yield to the first redemption date, discounted using the yield of a U.S. Treasury plus 50 basis points.

On May 7, the company announced it had received tenders and consents for $324.712 million of the notes, which was enough to execute the supplemental indenture to effect amendments that modified or eliminated substantially all of the restrictive covenants and eliminated some events of default.

The tender offer began on April 23.

Credit Suisse (collect 212 325-7596) was the dealer manager, and D.F. King & Co., Inc. (800 967-7921 or collect 212 269-5550) was the information agent.

American Tower is a Boston-based owner and operator of broadcast and wireless communications sites.

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