HOUSTON-Crown Castle International Corp. said some of its indirect subsidiaries plan to offer up to $1.9 billion of senior secured tower revenue notes, series 2005-1, in a private transaction.
The subsidiaries will be special purpose entities that will hold substantially all the U.S. towers of Crown Castle, said the company. The offering is being structured as an issuance of debt securities and repayment is expected to be made through cash flow from the operation of the tower assets. Excess cash flow from the operation towers will be available to Crown Castle for general corporate purposes, according to terms of the securities.
Crown Castle said it will use net proceeds to tender for and redeem several classes of its senior notes and to repay its outstanding Atlantic credit facility. The company said it expects the offering and tender offers to give it significantly more flexibility to invest its cash flow following debt service.
