TD Securities and J.P. Morgan are leading American Tower Corp.'s $1.1 billion refinancing. The bank meeting was scheduled for last Friday, after LMW went to press. The deal comprises a $400 million unfunded revolver, $300 million "A" loan and $400 million "B" loan. Proceeds will be used to repay the existing credit facility, which has about $666 million outstanding.
American Tower's existing credit agreement is from 2000. "It's a little dated. They're changing terms and conditions and redoing maturities," one banker said. GE Capital, Citibank and Credit Suisse First Boston have signed on as co-documentation agents.
Price talk is similar to the existing spreads, the banker noted. The existing "B" loan for the wireless-transmission tower company is priced at LIBOR plus 21/4% and the pro rata is priced at LIBOR plus 2%. In January, the company cut the interest costs on the "B" loan from LIBOR plus 31/2% (LMW, 1/19). TD bankers; a J.P. Morgan spokesman; and Brad Singer, American Tower's cfo, declined to comment.