Crown Castle Issues $1.5 Billion of Bonds to Fund Tender Offer

Dec. 11 (Bloomberg) -- Crown Castle International Corp., the provider of infrastructure for wireless communications, issued $1.5 billion of senior secured debt in two parts to help fund a tender offer.

The company, through its CC Holdings GS V LLC unit, sold $500 million of 2.381 percent, five-year notes to yield 175 basis points more than similar-maturity Treasuries and $1 billion of 3.849 percent bonds maturing in April 2023 at a relative yield of 220 basis points, according to data compiled by Bloomberg.

Proceeds will fund a tender offer for the company’s 7.75 percent senior secured securities due in 2017, and to redeem any of the debt that remains outstanding, according to a company statement. The rest of the proceeds will go toward a tender for its 9 percent debentures due in 2015.

Crown Castle previously sold debt in October, issuing $1.65 billion of 5.25 percent, senior unsecured notes due in January 2023 to yield 363 basis points more than similar-maturity Treasuries, Bloomberg data show. The bonds traded at 103.4 cents on the dollar to yield 4.82 percent on Nov. 15, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Moody’s Investors Service grades the new bonds Baa3, the lowest level of investment grade, the ratings company said today in a statement. Bank of America Corp., Barclays Plc, JPMorgan Chase & Co. and Morgan Stanley managed the sale, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net