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Subsequent Events
9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Event
5.25% Senior Notes
In October 2012, the Company issued $1.65 billion in aggregate principal amount of Senior Notes due 2023 ("5.25% Senior Notes"). The 5.25% Senior Notes will bear interest at a rate of 5.25% per annum, payable in cash during January and July of each year, commencing in July 2013. The Company expects to use the net proceeds from the 5.25% Senior Notes offering to partially fund the Proposed T-Mobile Transaction. If for any reason the Proposed T-Mobile Transaction does not close or closes with respect to a reduced number of sites or for reduced consideration, then we expect to use any remaining net proceeds from the 5.25% Senior Notes offering for general corporate purposes, which may include the repurchase or repayment of other indebtedness.
The Company may redeem the 5.25% Senior Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, plus a specified make-whole premium. Additionally, before January 2016, the Company may redeem up to 35% of the 5.25% Senior Notes with the net cash proceeds from certain equity offerings at redemption prices set forth in the respective indenture. The provisions of the 5.25% Senior Notes are similar to the 9% Senior Notes and the 7.125% Senior Notes.
Proposed T-Mobile Transaction
In September 2012, the Company entered into a definitive agreement with T-Mobile pursuant to which the Company will have the exclusive rights to lease, operate or otherwise acquire up to 7,180 T-Mobile towers for approximately $2.4 billion in cash at closing, subject to certain conditions and adjustments, including adjustments based on the actual number of towers at closing. Under the definitive agreement, the Company will have the exclusive right to lease and operate the T-Mobile towers (that are otherwise not owned by the Company) for a weighted-average term of approximately 28 years. In addition, the Company will have the option to purchase such towers at the end of their respective lease terms for aggregate option payments of approximately $2.4 billion, which payments, if the options are exercised, would be primarily due between 2025 and 2048. The Proposed T-Mobile Transaction is expected to close in fourth quarter 2012. The Company expects to fund the Proposed T-Mobile Transaction with cash on hand, inclusive of the proceeds from the 5.25% Senior Notes, and borrowings from the 2012 Revolver.