The Week That Was

In new issuance this week we got one convertible deal and another large mandatory offering.  American Tower (AMT) announced Tuesday it was offering $1.25 billion of mandatory convertible preferred shares.  Concurrently the company offered 23.5 million shares of common stock resulting in gross proceeds of $2.28 billion.  AMT, a Boston-based REIT, is a leading, independent global owner, operator, and developer of wireless and broadcast communications real estate with a portfolio of approximately 76,000 communications sites.  The proceeds from both transactions will be used to fund a portion of a planned transaction with Verizon Communications to lease, acquire, or otherwise operate and manage 11,000 Verizon wireless communications sites.  As we mentioned last week, we would prefer to see a convertible bond deal, but we'll take what we get.  The deal didn't leave much room on valuation, especially in light of the significant equity dividend. 

(For complete report, please contact John Anderson at janderson@hillsideadvisors.com for subscription information or your courtesy copy)