American Tower Corporation Announces Completion of Senior Notes Offering and Calls for Partial Redemption of Outstanding 9 3/8% Senior Notes.BOSTON -- American Tower Corporation Formed in 1995, American Tower Corporation is a publicly held company (NYSE: AMT) that is a leading owner and operator of wireless and broadcast communications sites in North America. Today American Tower owns and operates over 30,000 sites in the United States, Mexico and Brazil. (NYSE NYSE See: New York Stock Exchange : AMT See vPro. ) announced today that it closed its previously announced sale of 7.125% senior notes due 2012. The Company sold a total of $200.0 million principal amount of notes, which resulted in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company of approximately $199.8 million. The Company intends to use all of the net proceeds of the offering to repurchase and redeem a portion of its outstanding 9 3/8% senior notes due 2009. The Company used a portion of the net proceeds of the offering to repurchase today approximately $85.2 million of its outstanding 9 3/8% senior notes for an aggregate of approximately $90.1 million. The Company intends to use the balance of the net proceeds of the offering plus an additional $30.1 million in cash on hand to redeem $133.0 million principal amount of its 9 3/8% senior notes, as discussed below. The Company also announced today the call for redemption of $133.0 million principal amount of its 9 3/8% senior notes. The redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. has been set for January 5, 2005 at a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. equal to the principal amount of the notes plus an applicable premium. In addition, the Company will pay accrued and unpaid interest on the redeemed notes up to the redemption date. As a result of this repurchase and partial redemption Partial Redemption An investment-transaction classification that refers to the withdrawal of a portion of a security's value by the owner. Rather than withdrawing the entire amount of his or her security's value from the account, an investor may prefer to keep a portion of the of its 9 3/8% senior notes, the Company expects to record in the fourth quarter of 2004 and first quarter of 2005 an aggregate pre-tax loss on retirement of long-term obligations of approximately $15.6 million, consisting of approximately $11.7 million paid in excess of carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. and approximately $3.9 million in the write-off of related deferred financing fees. The Company expects this issuance of its 7.125% senior notes and this repurchase and partial redemption of its outstanding 9 3/8% senior notes will result in savings of approximately $6.2 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net interest expense. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the notes. The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and outside the United States only to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from registration requirements of the Securities Act and applicable state securities laws. This press release contains "forward-looking statements" regarding the redemption of the Company's senior notes and the resulting expected cost savings from refinancing activities. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include uncertainties relating to the amount of senior notes actually redeemed and the timing of the redemption of the senior notes. |
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