HOUSTON-Crown Castle International Corp. announced it has received consents for amendments to the terms of its 10.375-percent senior discount notes and its 11.25-percent senior discount notes from holders of the notes following its Nov. 24 tender offers and consent solicitations.
As of Dec. 9, when the consent solicitations expired, $424.3 million, or 94.5 percent, of the aggregate outstanding principal amount of 10.375-percent notes, and $190.4 million, or 93.7 percent, of its 11.25-percent notes had been tendered. A consent payment of $20 per $1,000 will be paid to holders who validly tendered their notes. Holders who did not tender their notes by Dec. 9 but do so before Dec. 23 when the tender offer expires will receive the tender offer consideration, but will not be eligible for the consent payment.
Meanwhile, this week, Standard & Poor’s Ratings Services affirmed its “B-” corporate credit rating on Crown. “The rating reflects Crown Castle’s high leverage and limited interest coverage measures resulting from its aggressive, largely debt-financed tower acquisition activities during the 1999-2001 time frame,” explained Michael Tsao, S&P credit analyst. “Somewhat mitigating the company’s aggressive financial risk profile are several favorable characteristics of the tower leasing business and the company’s ability to generate moderate free cash flows.”
