#United States #Capital Markets #Senior Secured Notes #Hollywood #ATP Tower Holdings

ATP Tower Holdings Announces Capital Markets Offering

On January 28, 2025, ATP Tower Holdings, LLC, along with its affiliates, unveiled its plans to enter the international capital markets with a substantial offering of $500 million in senior secured notes due in 2030. This significant financial maneuver highlights the company’s commitment to strengthening its capital structure and expanding its operations across Latin America.

Details of the Offering

The offering involves 7.875% senior secured notes, which are aimed at enhancing ATP’s financing landscape. The pricing for the offering was officially set on the day of the announcement, and the company anticipates that the notes will be issued on February 3, 2025. The issuance will rely on exemptions from the registration requirements outlined in the U.S. Securities Act of 1933, thereby allowing ATP for a more streamlined process in securing funding.

This move comes at a time when ATP is actively diversifying its portfolio across various telecommunications markets in Colombia, Peru, and Chile. The firm’s subsidiaries, including Andean Tower Partners Colombia SAS and ATP Fiber Colombia SAS, are playing a crucial role in consolidating its operations and financial standing.

Cash Tender Offer Expiration

In conjunction with the capital markets offering, ATP Tower Holdings announced the expiration of its cash tender offer aimed at acquiring its existing debt securities. The tender offer, which allowed investors to exchange their 4.05% senior secured notes due in 2026 for cash, expired at 9 a.m. New York City time on the same day. The cash tender offer was designed to reduce the existing obligations of the company, optimizing its debt profile for future growth.

At the time of expiration, a significant amount of valid tenders had been placed. Specifically, out of the $375 million outstanding in 4.05% senior secured notes, ATP had received $334.86 million in valid tenders and an additional $1.55 million reflected in guaranteed delivery notices. This acceptance rate illustrates strong investor confidence in ATP's strategic direction, as the firm anticipates making payment on the accepted notes shortly after the settlement date.

Future Expectations and Market Position

The ATP Co-Issuers, consisting of several subsidiaries across Latin America, are set to follow through on the settlement of these notes soon after their issuance. Industry experts express optimism regarding ATP's ability to navigate the competitive landscape of telecommunications infrastructure effectively. The successful execution of these financial strategies not only points towards ATP’s robust operational framework but also underlines its commitment to meeting market demands.

The firm has engaged leading financial institutions including Goldman Sachs, J.P. Morgan, Deutsche Bank, and Scotia Capital as Dealer Managers for this transaction, ensuring a robust backing from prominent financiers in the capital markets arena.

Conclusion

With its recent announcements, ATP Tower Holdings is poised to enhance its market presence significantly, reaffirming its standing as a key player in the telecommunications industry in South America. As they move forward, stakeholders and investors alike will be keenly watching how these financial strategies culminate into operational success and market growth.