BOSTON-American Tower Corp. announced it has completed its previously announced redemption of $75 million principal amount of its 9.375-percent senior notes due 2009. The company redeemed the notes pursuant to their terms at 104.688-percent of the principal amount plus unpaid and accrued interest up to July 21. The total aggregate redemption price was about $81.8 million, including about $3.3 million in accrued interest.
The company financed the redemption through a combination of internally generated funds and borrowings under the revolving loan of its credit facility. Upon completion of this partial redemption, about $67 million principal amount of the 9.375-percent notes remained outstanding.
As a result of this partial redemption, American Tower says it expects to record in the third quarter of 2005 an aggregate pre-tax loss on retirement of long-term obligations of $4.7 million, consisting of $3.5 million related to amounts paid in excess of carrying value and $1.2 million in the write-off of related deferred financing fees. The company expects this partial redemption to result in savings of $5 million in annualized net interest expense.
