In his latest Telecom Newsletter for investors, EvercoreISI telecom analyst Jonathan Schildkraut late Friday reported his team had taken a closer look at recent debt transactions in the towers space. “Against a backdrop of potentially rising interest rates, we find two tower debt transactions that were well received by the credit markets. American Tower Company raised $1.25B of senior unsecured notes and saw favorable interest rates,” wrote Schildkraut. “Additionally, Crown Castle International completed a new $5.5B senior unsecured credit facility to replace its existing senior secured credit facility. With the big transition to unsecured debt, Moody’s upgraded Crown Castle’s senior unsecured credit rating two notches, from Ba3 to Ba1. We view the American Tower’s pricing and Crown Castle’s upgrade as confirmation that the debt markets remain favorable for tower company credit.”
The analyst said he believes American Tower will use the proceeds of its notes sale to fund its recently announced acquisition of Indian tower operator Viom, a deal expected to close by mid-year.
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