UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 1.01 | Entry into a Material Definitive Agreement. |
Offering of Common Stock
On May 5, 2021, American Tower Corporation (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC, as the representatives of the several underwriters named in Schedule A thereto (the “Underwriters”), pursuant to which the Company agreed to issue and sell to the Underwriters 9,000,000 shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), in a registered public offering pursuant to the Company’s automatic shelf registration statement on Form S-3 (No. 333-231931), as filed with the Securities and Exchange Commission on June 4, 2019. The Underwriters were also granted a 30-day option to purchase an additional 900,000 shares of Common Stock to cover over-allotments, if any. For a complete description of the terms and conditions of the Underwriting Agreement, please refer to the Underwriting Agreement attached hereto as Exhibit 1.1 and incorporated herein by reference.
Bridge Facility
As previously disclosed, in connection with entering into the Company’s transaction with Telxius Telecom, S.A. (the “Pending Telxius Acquisition”), the Company entered into a commitment letter, dated January 13, 2021, with Bank of America, N.A. and BofA Securities, Inc. (together, “BofA”) pursuant to which BofA committed to provide up to 7.5 billion Euros (“EUR”) (approximately $9.1 billion at the date of signing), which was subsequently reduced to 4.275 billion EUR (approximately $5.2 billion at the date of signing) effective February 10, 2021, in bridge loans (the “Bridge Loan Commitment”) to ensure financing for the Pending Telxius Acquisition. Effective May 10, 2021, the Bridge Loan Commitment was reduced to approximately 2.3 billion EUR (approximately $2.8 billion at current foreign exchange rates) as a result of the receipt of approximately $2,361.8 million in net proceeds from the offering described herein, including proceeds from the Underwriters’ exercise of their option to purchase an additional 900,000 shares.
| Item 8.01 | Other Events. |
On May 10, 2021, the Company completed its registered public offering of 9,000,000 shares of Common Stock. Additionally, the Underwriters have exercised their option to purchase an additional 900,000 shares of Common Stock. The offering resulted in net proceeds to the Company of approximately $2,361.8 million, after reflecting underwriting discounts and estimated offering expenses. The offering was upsized from the previously announced offering size of 8,500,000 shares. The Company intends to use the net proceeds from this offering, together with cash on hand and borrowings under its revolving credit facilities and term loans, to finance the Pending Telxius Acquisition and to pay related fees and expenses. Prior to the closing of the Pending Telxius Acquisition, the net proceeds will be used to repay existing indebtedness under the Company’s revolving credit facilities, under which future borrowings are expected to be used to, among other things, fund the Pending Telxius Acquisition at closing. If for any reason the Pending Telxius Acquisition is not completed, the Company expects to use the net proceeds from this equity offering to repay existing indebtedness and for general corporate purposes.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. |
Description | |
| 1.1 | Underwriting Agreement relating to the Common Stock, dated May 5, 2021, among American Tower Corporation and BofA Securities, Inc., Barclays Capital Inc., Citigroup | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN TOWER CORPORATION | ||||||
| (Registrant) | ||||||
| Date: May 10, 2021 | By: | /s/ Rodney M. Smith | ||||
| Rodney M. Smith | ||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||