Crown Castle Announces Proposed New Credit Facility
Published on: 11th Jan 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Tower network operating company Crown Castle Operating Company (CCOC) has announced that it is seeking to refinance its existing credit facility with a new US$3.1 billion senior credit facility.
The New Facility is expected to consist of a $1 billion Senior Secured Revolving Credit Facility maturing five years after the facility's closing date, a $500 million Delayed-Draw Senior Secured Term Loan A Facility maturing five years after the facility's closing date, and a $1.6 billion Senior Secured Term Loan B Facility maturing seven years after the facility's closing date.
CCOC expects the Term Loan B to be fully drawn at closing and the Revolver and the Term Loan A to remain undrawn at closing. The Term Loan A may be drawn in a single drawing on or after the closing of the New Facility but on or prior to April 1, 2012.
CCOC is in the process of seeking commitments from a group of lenders for the New Facility.
The proceeds of the loans under the New Facility are expected to be used in part to repay CCOC's existing revolving credit facility (under which $251 million is currently outstanding), to repay CCOC's existing term loan facility (under which $619 million is currently outstanding), and to fund CCOC's expected acquisition of NextG Networks for approximately $1 billion (previously announced on December 16, 2011).
The balance of the proceeds will be available for general corporate purposes, including acquisitions permitted under the terms of the New Facility and purchases of shares of common stock of Crown Castle. CCOC anticipates the New Facility to be in place before the end of the first quarter of 2012.
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