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American Tower (AMT) to Raise $1.38B With Senior Notes Offering
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American Tower Corporation (AMT - Free Report) has priced a public offering of two series of senior unsecured notes, aggregating $2.6 billion in principal amount. The net proceeds of the offering are anticipated to be $1,386.3 million, after deducting underwriting discounts and projected offering expenses.
This consists of 1.600% notes due 2026 and 2.700% senior notes due 2031, both with a principal amount of $700 million, respectively. The 2026 notes have been priced at 99.918% of face value, while the 2031 notes will be issued at 99.807% of face value.
American Tower plans to use the net proceeds to pay down the outstanding balance under the company’s $4.1 billion senior unsecured multicurrency revolving credit facility. Notably, the facility was amended and restated in February 2021.
American Tower’s efforts to strengthen its liquidity in these testing times and tap the debt market amid a low interest-rate environment are strategic fits. Also, tapping the debt market for meeting outstanding balance under its credit facility will help the company to preserve its liquidity.
In fact, it has a robust operating platform, with consistent adjusted EBITDA margins and revenue growth as well as a favorable return on invested capital. This indicates the strength in the company’s core underlying business and supports its ability to manage its near-term obligations.
Also, as of the fourth-quarter 2020 end, its net leverage ratio was at 5X and total liquidity was at $4.9 billion. This comprised $1.7 billion in cash and cash equivalents, and availability of $3.2 billion under its revolving credit facilities (net of any outstanding letters of credit). Moreover, with weighted average remaining term for the debt of seven years, it has decent financial flexibility.
Finally, as of the fourth-quarter end, it enjoyed investment-grade credit ratings of BBB-, BBB+ and Baa3 as well as a stable outlook from Standard & Poor’s, Fitch, and Moody’s, respectively. This renders the company favorable access to debt.
However, the note offering increases the company’s long-term debt.
Shares of this Zacks Rank #3 (Hold) company have gained 2.2% over the past year compared with the industry’s growth of 26.4%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (“FFO”) per share estimates for the current year have moved up 3.8% to $1.61 in the past month. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 8.1% to $5.97 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% upward to $2.10 in a month’s time.
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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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American Tower (AMT) to Raise $1.38B With Senior Notes Offering
American Tower Corporation (AMT - Free Report) has priced a public offering of two series of senior unsecured notes, aggregating $2.6 billion in principal amount. The net proceeds of the offering are anticipated to be $1,386.3 million, after deducting underwriting discounts and projected offering expenses.
This consists of 1.600% notes due 2026 and 2.700% senior notes due 2031, both with a principal amount of $700 million, respectively. The 2026 notes have been priced at 99.918% of face value, while the 2031 notes will be issued at 99.807% of face value.
American Tower plans to use the net proceeds to pay down the outstanding balance under the company’s $4.1 billion senior unsecured multicurrency revolving credit facility. Notably, the facility was amended and restated in February 2021.
American Tower’s efforts to strengthen its liquidity in these testing times and tap the debt market amid a low interest-rate environment are strategic fits. Also, tapping the debt market for meeting outstanding balance under its credit facility will help the company to preserve its liquidity.
In fact, it has a robust operating platform, with consistent adjusted EBITDA margins and revenue growth as well as a favorable return on invested capital. This indicates the strength in the company’s core underlying business and supports its ability to manage its near-term obligations.
Also, as of the fourth-quarter 2020 end, its net leverage ratio was at 5X and total liquidity was at $4.9 billion. This comprised $1.7 billion in cash and cash equivalents, and availability of $3.2 billion under its revolving credit facilities (net of any outstanding letters of credit). Moreover, with weighted average remaining term for the debt of seven years, it has decent financial flexibility.
Finally, as of the fourth-quarter end, it enjoyed investment-grade credit ratings of BBB-, BBB+ and Baa3 as well as a stable outlook from Standard & Poor’s, Fitch, and Moody’s, respectively. This renders the company favorable access to debt.
However, the note offering increases the company’s long-term debt.
Shares of this Zacks Rank #3 (Hold) company have gained 2.2% over the past year compared with the industry’s growth of 26.4%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (“FFO”) per share estimates for the current year have moved up 3.8% to $1.61 in the past month. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 8.1% to $5.97 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% upward to $2.10 in a month’s time.
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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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