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SBA Pays $1.45 Billion for 3250 Towers Across the USA
Published on:
SBA Communications has announced that it is buying over 3,250 towers across the USA from TowerCo for US$1.45 billion.
The transaction is being carried out as a merger between SBA and certain affiliates of TowerCo that own 3,252 tower sites in 47 states across the USA and Puerto Rico. The consideration to be paid by SBA will be $1.2 billion in cash and 4.6 million shares of SBA Class A common stock, implying a total transaction value of $1.45 billion.
The cash consideration shall be paid from a combination of cash on hand, existing credit facilities and up to $900 million in financing commitments from J.P. Morgan.
SBA estimates the TowerCo assets will produce approximately $93 to $95 million in tower cash flow for the full calendar year 2013.
"We are very pleased with the opportunity to acquire the TowerCo assets," commented Jeffrey A. Stoops, SBA's President and Chief Executive Officer. "We believe the TowerCo assets are high quality, well located and have ample capacity for additional tenants. We know the TowerCo management team well, and have the highest regard for them as operators. The towers are in excellent shape from a legal, systems and operational perspective, and will be readily integrated into our existing portfolio. As was the case with our Mobilitie acquisition earlier this year, we expect these towers will be in great demand for the future cell-splitting needs of US wireless carriers, which needs we anticipate will flow from the continued growth in consumer demand for wireless data services. We expect this transaction will be immediately accretive to AFFO per share."
Tags: [sba communications] [USA]
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