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American Tower (AMT) to Raise $1.6B With Senior Notes Offerings
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American Tower Corporation (AMT - Free Report) has priced a public offering of three series of senior unsecured notes, aggregating $1.7 billion in principal amount. The net proceeds of the offering are estimated to be $1,678.9 million, after deducting underwriting discounts and offering expenses.
Specifically, the company priced senior unsecured notes maturing in 2024, 2028 and 2051, with aggregate principal amounts of $500 million, $650 million and $550 million, respectively. The 2024 notes carry an annual interest rate of 0.600% and are priced at 99.825% of the face value.
The 2028 notes, with an interest rate of 1.500% per year, have been priced at 99.971% of their face value, while the 2051 notes, carrying an annual interest rate of 2.950%, are being issued at 98.930% of the face value.
The company plans to use net proceeds to repay outstanding amounts under its $2.35-billion senior unsecured revolving credit facility that was amended and restated in December 2019. Notably, as of the third-quarter end, the outstanding principal balance under this credit facility amounted to $390 million.
Following the allocation referenced above, American Tower intends to use the remaining funds for general business needs, inclusive of acquisitions, additions to working capital and to repay or refinance existing debt obligations.
The company’s efforts to strengthen its near-term liquidity in these testing times and opportunistically tap the debt market amid the current low interest-rate environment are strategic fits. In fact, American Tower maintains a strong liquidity position, has no near-term debt maturities and has an extended average debt maturity term of more than seven years. These indicate the company’s substantial financial flexibility.
Moreover, at the end of the third quarter, it had $6.7 billion of total liquidity. This comprised $1.6 billion in cash and cash equivalents, and availability of $5.1 billion under its revolving credit facilities (net of any outstanding letters of credit).
However, the notes offering increases the company’s long-term debt.
Shares of this Zacks Rank #3 (Hold) company have rallied 10.3% over the past year as against the industry’s decline of 2.3%.
Extra Space Storage Inc’s (EXR - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved upmarginally to $5.02 over the past week. The company currently carries a Zacks Rank of 2.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for 2020 FFO per share has improved 2.6% to $1.17 in a month’s time. The company has a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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American Tower (AMT) to Raise $1.6B With Senior Notes Offerings
American Tower Corporation (AMT - Free Report) has priced a public offering of three series of senior unsecured notes, aggregating $1.7 billion in principal amount. The net proceeds of the offering are estimated to be $1,678.9 million, after deducting underwriting discounts and offering expenses.
Specifically, the company priced senior unsecured notes maturing in 2024, 2028 and 2051, with aggregate principal amounts of $500 million, $650 million and $550 million, respectively. The 2024 notes carry an annual interest rate of 0.600% and are priced at 99.825% of the face value.
The 2028 notes, with an interest rate of 1.500% per year, have been priced at 99.971% of their face value, while the 2051 notes, carrying an annual interest rate of 2.950%, are being issued at 98.930% of the face value.
The company plans to use net proceeds to repay outstanding amounts under its $2.35-billion senior unsecured revolving credit facility that was amended and restated in December 2019. Notably, as of the third-quarter end, the outstanding principal balance under this credit facility amounted to $390 million.
Following the allocation referenced above, American Tower intends to use the remaining funds for general business needs, inclusive of acquisitions, additions to working capital and to repay or refinance existing debt obligations.
The company’s efforts to strengthen its near-term liquidity in these testing times and opportunistically tap the debt market amid the current low interest-rate environment are strategic fits. In fact, American Tower maintains a strong liquidity position, has no near-term debt maturities and has an extended average debt maturity term of more than seven years. These indicate the company’s substantial financial flexibility.
Moreover, at the end of the third quarter, it had $6.7 billion of total liquidity. This comprised $1.6 billion in cash and cash equivalents, and availability of $5.1 billion under its revolving credit facilities (net of any outstanding letters of credit).
However, the notes offering increases the company’s long-term debt.
Shares of this Zacks Rank #3 (Hold) company have rallied 10.3% over the past year as against the industry’s decline of 2.3%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (FFO) per share estimates for 2020 have been revised upward by 1.7% to $1.21 over the past month. The company carries a Zacks Rank of 2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Extra Space Storage Inc’s (EXR - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved upmarginally to $5.02 over the past week. The company currently carries a Zacks Rank of 2.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for 2020 FFO per share has improved 2.6% to $1.17 in a month’s time. The company has a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>