The $1 billion term loan "B" for Crown Castle broke in the market at 100.50-100.75 last Thursday. Morgan Stanley leads the credit, which also consists of a 364-day, $250 million revolver led by KeyBank. Royal Bank of Scotland and JPMorgan also play in the deal.
The company will use the credit to refinance an existing $325 million facility and pay off a $309 million equity interest of Mountain Union Telecom, a recent acquisition by Crown.
Jay Brown, treasurer, noted that the $1.25 billion facility will keep the company's debt to EBITDA ratio at seven times, up a notch from six times. The leverage ratio is maintained between five and seven times. Crown, which generates revenue from its wireless tower leasing business, was given a B2 and BB rating by Moody's Investors Service and Standard & Poor's.