The company faces interest rate risk from variable-rate debt, and foreign currency risk from international operations. Fluctuations in foreign exchange rates could lead to unrealized losses. Significant customer defaults could negatively impact cash flow and liquidity. Compliance with debt covenants is crucial; failure to meet these could trigger defaults and make debt immediately payable. The company's exposure to a small number of customers also poses a risk. The outcome of pending litigation is uncertain.
Financial Upside
The company's primary business is leasing communications sites, generating recurring revenue. Lease escalations and pass-through revenue are expected to increase revenue. The sale of ATC TIPL generated significant proceeds, which were used to repay debt. The company has significant borrowing capacity under credit facilities. New debt offerings and potential acquisitions present opportunities for growth.
