Sprint Nextel Completes Sale of Tower Assets

Sprint Nextel says that it has completed the previously announced sale of approximately 3,080 towers to TowerCo for an estimated US$670 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.

Posted to the site on 25th September 2008