US based American Tower in bid to raise $700 million for its Indian acquisition through a registered public offering

In a bid to fund its recent acquisition in India and undertake additional investments, American Tower, a US based wireless towers and communications sites operator, said Thursday that it plans to raise about $700 million for the investments. However, American Tower reiterated that its plan is to raise the needed capital for its acquisition of the Indian firm, Essar Telecom Infrastructure Private Ltd.

The company recently agreed on a deal that will see it takeover the Indian telecoms infrastructure firm, Essar Telecom from its parent company, the Essar Group. In its plans, the money is to be raised through a registered public offering of senior notes due on September 2020, and it expects to get around $693.8 million from the undertaking.

However, other than the capital for its Indian acquisition, American Tower said it intends to use the extra funds to scout for additional investments to bolster its growth and international strategy. American Tower currently runs over 32,000 wireless communications sites based in the US, Mexico, Brazil, Chile, Peru and India. The new notes to be issued will be offered at a price equal to 99.88% of their face value, said American Tower’s officials.

The firm reported that it had hired Citigroup Global Markets Inc, Credit Suisse Securities, J.P Morgan Securities and RBS Securities Inc to act as joint book-running managers. American Towers agreed on a deal with India’s Essar Group for the acquisition of Essar Group’s unit, Essar Telecom Infrastructure Private Ltd in an all cash deal.

Essar Telecom Infrastructure is one of India’s foremost independent tower firms and the transaction had valued the business at about $455 million, about Rs 2,100 crore. The American Tower Corp began its Indian operations in 2008 and has since made three tower acquisitions in the country.

American Tower is a leading independent owner and operator of wireless and broadcast communication sites. In addition to leasing space on towers, the firm provides customized collocation solutions through its Distributed Antenna Systems (DAS) that support seamless in-building and outdoor wireless coverage.

America Tower Corp India owns or operates over 7,400 tower sites throughout the country, with an average of 1.8 tenants per tower.  The firm has established working relationships with major wireless service providers in India and now has a presence in all telecom circles in the country.

13 Aug 2010.