Research Update: ATP Tower Holdings, LLC And Its Proposed $375 Million Senior Secured Bond Rated 'BB-', Outlook Stable

South America-based tower company ATP Tower Holdings, LLC provides digital and telecommunication infrastructure. The company owns, operates, and manages about 3,500 towers and 3,223 km of fiber across Peru, Chile, and Colombia, generating $75 million in revenue and $55.4 million in adjusted EBITDA by S&P Global as of Dec. 31, 2020. ATP plans to issue a $375 million senior secured bond and secure a $60 million revolving credit facility (RCF) to refinance debt and fund capex for expansion in the second quarter of 2021. On April 14, 2021, S&P Global Ratings assigned a 'BB-' issuer credit rating to ATP. We also assigned a 'BB-' issue-level rating to the company's proposed $375 million senior secured bond. The stable outlook reflects our

...- South America-based tower company ATP Tower Holdings, LLC provides digital and telecommunication infrastructure. The company owns, operates, and manages about 3,500 towers and 3,223 km of fiber across Peru, Chile, and Colombia, generating $75 million in revenue and $55.4 million in adjusted EBITDA by S&P Global as of Dec. 31, 2020. - ATP plans to issue a $375 million senior secured bond and secure a $60 million revolving credit facility (RCF) to refinance debt and fund capex for expansion in the second quarter of 2021. - On April 14, 2021, S&P Global Ratings assigned a '##-' issuer credit rating to ATP. We also assigned a '##-' issue-level rating to the company's proposed $375 million senior secured bond. - The stable outlook reflects our expectation that ATP will maintain its profitability through adding tenants on its installed capacity, while adhering to its growth plans. We expect debt to EBITDA ratios to be above 5.0x and free operating cash flow (FOCF) to debt below 5% for the next...

Research Update