American Tower exchanges notes, looks at international expansion

American Tower Corp. said it has commenced an offer to exchange its outstanding $600 million worth of 4.625% Senior Notes due in 2015 for new 4.625% Senior Notes also due in 2015. The tower company said the exchange is being made to satisfy “certain obligation under a registration rights agreement entered into by American Tower” when it originally issued the initial notes on Oct. 20 of this year.
American Tower added that the terms of the new notes are “substantially the same as the terms of the initial notes, except that the new notes will have no transfer restrictions under the federal securities laws, no rights to additional interest and no registration rights.” Notes not exchanged will continue to be subject to existing transfer restrictions.
The exchange offer will expire on Jan. 28, 2010, unless extended.
American Tower’s stock was trading down slightly early Wednesday at $43.09 per share, just off its 52-week high of $43.73 per share set on Tuesday.
The Wall Street Journal India this morning was also reporting that American Tower was in talks to acquire a controlling stake in India’s Essar Telecom Infrastructure Pvt. Ltd., which is the tower division of the Essar Group. The deal was initially reported on earlier this month with the Economic Times valuing the transaction at $400 million. If completed, the move would provide American Tower with a substantial foothold in the rapidly growing Indian telecom market.
American Tower recently acquired 196 towers from regional telecom provider Cincinnati Bell Inc. for $100 million and is one of the largest independent tower owners in the U.S.