Sprint Nextel Completes Sale of Tower Assets
Published on: 24th Sep 2008
Note -- this news article is more than a year old.
Sprint Nextel says that it has completed the previously announced sale of approximately 3 080 towers to TowerCo for an estimated USD670 million in cash with the number of towers and sale price subject to post close adjustment. The two companies have also signed a long term leasing agreement for TowerCo to provide Sprint Nextel with wireless communications towers to support the company's CDMA iDEN and WiMAX networks.
"Leasing rather than owning these network facilities is a more efficient use of resources and allows us to focus more closely on our core business of providing communications services to our customers," said Bob Azzi, Sprint senior vice president - Network Services. "This deal also gives Sprint additional liquidity and greater flexibility in managing our business."
Sprint will account for the transaction with TowerCo as a financing arrangement. For GAAP purposes, the total final proceeds received will be treated as a long-term debt obligation.