American Tower Sells $1.8 Billion in Asset-Backed Securities
American Tower has raised $1.8 billion from the sale of asset-backed securities. Those bonds, which are divided into two series, are secured by revenue from leases on the company's communication sites. American Tower holds 16,765 such leases on more than 5,000 sites across the US.
The first series boasts a principal balance of $500 million, an interest rate of 1.551%, and a final maturity of March 2043. The figures for the second are $1.3 billion, 3.07%, and March 2048.
According to The Wall Street Journal, this is the largest issue of asset-backed securities outside of the automobile loan sector since 2009.
The company said that the proceeds from the issue will be used to retire debt.
The article American Tower Sells $1.8 Billion in Asset-Backed Securities originally appeared on Fool.com.Fool contributor Eric Volkman has no position in American Tower. The Motley Fool recommends American Tower. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.