AAT Communications Corp. is recasting its bank debt through leads TD Securities and Credit Suisse First Boston. The new deal will refinance existing debt, but also fund a $100 million dividend and back potential acquisitions and capital expenditures. An AAT spokesman did not return calls.
Syndication of the new $335 million facility will launch at a bank meeting July 11. It consists of a $200 million "B" loan, an $85 million second-lien loan and a $50 million revolver. This refinances a $200 million "B" loan, a $75 million "A" loan and a $50 million revolver arranged by the two banks last year. Pricing on the new debt could not be determined.
One banker explained that the tower sector has improved considerably. He pointed out the recent valuation for SpectraSite, which announced a merger with American Tower last May.
Standard & Poor's raised its corporate credit rating on AAT from B- to BB-. The first lien bank debt was rated BB+ and the second lien was rated BB. "AAT has benefited from growth experienced by the wireless carriers, both in terms of absolute subscribers and per subscriber minutes of use," states S&P in a report. The major carriers have upgraded their networks to provide for higher speed wireless broadband capabilities, which in many cases has required additional tower equipment, especially for the GSM networks, the S&P report adds.