In order to reduce its existing indebtedness,
American Tower Corporation
), a real estate investment trust (REIT), recently announced that
its entering into an unsecured term loan worth $750.0 million. The
term loan, which is scheduled to mature on June 29, 2017, bears an
interest rate equivalent to LIBOR plus 1.75%.
American Tower received approximately $746.4 million from the
term loan, of which approximately $632.0 million were used to repay
its outstanding loan under one of its unsecured revolving credit
facilities. The company intends to use the remaining amount for
general corporate purposes.
As of March 31, 2012, the company had cash and cash equivalents
of $0.5 billion and borrowing ability of approximately $1.3 billion
under its revolving credit facilities. With the latest transaction,
the company will now have a borrowing capacity of approximately
$2.0 billion under its revolving credit facilities (net of any
outstanding letters of credit).
Boston, Massachusetts-based American Tower engages in ownership
and development of communications sites. As of March 31, 2012, the
company owned and operated around 47,000 communication sites across
United States and in Brazil, Chile, Colombia, Ghana, India, Mexico,
Peru and South Africa on the international front.
American Tower, which competes with the likes of
Winthrop Realty Trust
STAG Industrial, Inc.
), will likely release its second quarter 2012 earnings on July 30,
2012. The Zacks Consensus Estimate for the second quarter 2012 FFO
(fund from operations) is pegged at 41 cents per share. We
presently have a long-term Neutral recommendation and Zacks #3 Rank
(a short-term Hold rating) for the company.
AMER TOWER CORP (AMT): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
STAG INDUSTRIAL (STAG): Free Stock Analysis
To read this article on Zacks.com click here.