ITEM 1.01 - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On April 26, 2023, Crown Castle Inc. (“Company”) closed its previously announced public offering (“Debt Offering”) of $600,000,000 aggregate principal amount of the Company’s 4.800% Senior Notes due 2028 (“2028 Notes”) and $750,000,000 aggregate principal amount of the Company’s 5.100% Senior Notes due 2033 (“2033 Notes,” together with the 2028 Notes, “Notes”). The Notes were issued pursuant to an indenture dated as of February 11, 2019 (“Base Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (“Trustee”), as amended and supplemented by the ninth supplemental indenture dated as of April 26, 2023 (“Ninth Supplemental Indenture” and, together with the Base Indenture, “Indenture”), between the Company and the Trustee. The Company intends to use the net proceeds from the Debt Offering to repay outstanding indebtedness under its existing revolving credit facility and pay related fees and expenses.
The Notes are senior unsecured obligations of the Company, which rank equally with all existing and future senior indebtedness of the Company, including the Company’s obligations under its senior unsecured credit facility, its commercial paper program and its existing bonds, and senior to all future subordinated indebtedness of the Company. The Notes will effectively rank junior to all of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes will be structurally subordinated to all existing and future liabilities and obligations of the Company’s subsidiaries. The 2028 Notes will bear interest at a rate of 4.800% per annum and the 2033 Notes will bear interest at a rate of 5.100% per annum, with interest on the 2028 Notes payable semi-annually on March 1 and September 1, to persons who are registered holders of the 2028 Notes on the immediately preceding February 15 and August 15, beginning on September 1, 2023, and with interest on the 2033 Notes payable semi-annually on May 1 and November 1, to persons who are registered holders of the 2033 Notes on the immediately preceding April 15 and October 15, beginning on November 1, 2023.
The Indenture limits the ability of the Company and its subsidiaries to incur certain liens and merge with or into other companies, in each case subject to certain exceptions and qualifications set forth in the Indenture.
In the event of a Change of Control Triggering Event (as defined in the Indenture), holders of the Notes of a series will have the right to require the Company to repurchase all or any part of the Notes of such series at a purchase price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest, if any, to the date of such repurchase.
The 2028 Notes will mature on September 1, 2028. The 2033 Notes will mature on May 1, 2033. However, the Company, at its option, may redeem some or all of the Notes of a series at any time or from time to time prior to their maturity. If the Company elects to redeem the 2028 Notes prior to August 1, 2028 (the date that is one month prior to their maturity date) or the 2033 Notes prior to February 1, 2033 (the date that is three months prior to their maturity date) (each, a “Par Call Date”), the Company will pay a redemption price in respect of the Notes to be redeemed equal to the greater of:
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(1) |
(a) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the redemption date (assuming such Notes matured on the applicable Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate (as defined in the Ninth Supplemental Indenture) plus 20 basis points, in the case of the 2028 Notes, and 25 basis points, in the case of the 2033 Notes, less (b) interest accrued on those Notes to the date of redemption, and |
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(2) |
100% of the principal amount of the Notes to be redeemed, |
plus, in either case, accrued and unpaid interest thereon to the redemption date.
If the Company elects to redeem the Notes of a series on or after the applicable Par Call Date, the Company will pay a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.
The above description of the Indenture does not purport to be a complete statement of the parties’ rights and obligations under the Indenture and is qualified in its entirety by reference to the terms of the Base Indenture, a copy of which was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on February 11, 2019, and the Ninth Supplemental Indenture, a copy of which the Company is filing as Exhibit 4.1 to this Current Report on Form 8-K, and which is incorporated herein by reference.