American Tower prices $1B in senior notes for debt repayment

BOSTON - American Tower Corporation (NYSE: AMT), a leading global real estate investment trust (REIT) with a market capitalization of approximately $98 billion, has announced the pricing of its registered public offering of senior unsecured notes. The offering comprises $650 million in notes due 2030 with a 4.900% interest rate and $350 million due 2035 at 5.350%. These notes are priced slightly below face value, at 99.846% and 99.724% respectively. According to InvestingPro data, AMT maintains a solid financial health score of "GOOD" despite its current debt levels.

The company anticipates net proceeds of approximately $988.9 million, after underwriting discounts and estimated expenses. The funds are earmarked for repaying its 2.400% senior unsecured notes due in 2025, reducing debt under its $6 billion senior unsecured multicurrency revolving credit facility, and for general corporate purposes. This debt management strategy is crucial as InvestingPro analysis shows the company’s total debt stands at approximately $44 billion, with short-term obligations currently exceeding liquid assets.

Joint Book-Running Managers for this offering include J.P. Morgan Securities LLC, BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC. The securities are offered only by prospectus and related supplement, available through the Securities and Exchange Commission’s website or directly from the managing banks.

American Tower is one of the largest global REITs, specializing in the ownership, operation, and development of multi-tenant communications real estate. Its portfolio boasts nearly 149,000 communication sites and a substantial footprint of U.S. data center facilities. The company has demonstrated strong shareholder value, maintaining dividend payments for 15 consecutive years with a current yield of 3.19%. Detailed analysis of AMT’s performance metrics and growth potential is available through InvestingPro’s comprehensive research reports, which cover over 1,400 top US stocks.

This press release contains forward-looking statements regarding the company’s plans and expected financial performance. However, these statements are not guarantees of future performance and are subject to risks, as detailed in American Tower’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

The information for this article is based on a press release statement from American Tower Corporation.

In other recent news, American Tower Corporation reported strong financial results for the fourth quarter of 2024, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $2.32, exceeding the forecasted $1.77, while revenue reached $2.55 billion against an anticipated $2.52 billion. Following these results, JMP Securities raised its price target for American Tower to $248, maintaining a Market Outperform rating, citing strong demand in international segments and consistent U.S. leasing growth. Similarly, BMO Capital Markets increased its price target to $220, reaffirming an Outperform rating, despite noting a softer outlook for 2025 due to foreign exchange headwinds.

In another development, American Tower announced changes to its executive compensation, with adjustments made for top executives, including CEO Steven O. Vondran and CFO Rodney M. Smith. The compensation updates align with the company’s performance and strategic objectives. Meanwhile, the company continues to focus on expanding its data center business and enhancing 5G network capabilities, planning significant capital deployments for 2025. These efforts reflect American Tower’s strategic positioning within the telecommunications infrastructure sector, as noted by analysts from both JMP Securities and BMO Capital Markets.

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