Crown Castle (CCI) Amends Senior Unsecured Credit Facility

Crown Castle International Corp. CCI has extended its credit maturity and adds sustainability targets.

The senior unsecured credit facility consists of $5 billion senior unsecured revolving credit facility as well as $1.2 billion unsecured Term Loan A. With the amendment, maturity of the credit facility has been extended to June 2026. Moreover, based on the company’s performance against the sustainability targets, the pricing of the credit facility is subject to adjustment.

Notably, the extension of debt maturities will help it improve its maturity profile and enjoy greater liquidity for day-to-day operations. Also, the sustainability-linked pricing incentive is encouraging.

Per Jay Brown, CEO of Crown Castle, "We appreciate the continued support from our strategic lending partners and are excited to add targets to our Credit Facility that reflect our efforts to reduce our net emissions".

Notably, growth in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks at scale are likely to spur the demand for its towers. Given Crown Castle’s ability to offer a holistic network solution with towers, fiber and small cells and ample liquidity, it is well-poised to bank on these trends.

Moreover, Crown Castle focuses on having sufficient liquidity and a decent balance sheet strength. Any efforts to extend weighted average debt maturities and reduction of borrowing cost will boost the balance-sheet flexibility.

Crown Castle currently carries a Zacks Rank #3 (Hold). The company’s shares have gained 26.5%, outperforming its industry’s rally of 17.5% over the past six months. In addition, the Zacks Consensus Estimate for 2021 funds from operations (FFO) per share moved up 1.2% over the past two months.

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Key Industry Picks

OUTFRONT Media Inc.’s OUT Zacks Consensus Estimate for 2021 funds from operations (FFO) per share moved up 3.6% over the past two months. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Geo Group Inc’s GEO Zacks Consensus Estimate for the current-year FFO per share moved 10.1% north in two months’ time. The company carries a Zacks Rank of 2 at present.

BRAEMAR HOTELS & RESORTS INC.’s BHR FFO per share estimate for the ongoing year has been revised upward by 4.5% in the past month. The company carries a Zacks Rank of 2, currently.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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