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T-Mobile USA Completes $2.4 Billion Towers Sale to Crown Castle
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T-Mobile USA has closed the previously announced deal with Crown Castle on the long-term lease as well as sale of radio towers.
On September 28, 2012, T-Mobile USA announced the conclusion of a framework agreement with Crown Castle regarding the lease-leaseback and the sale of approximately 7,100 wireless communication towers owned by Deutsche Telekom's U.S. subsidiary.
Crown now has the exclusive right to lease and operate the T-Mobile Towers for a weighted average lease term of approximately 28 years. Crown will also have the option to purchase such towers at the end of the respective lease term for aggregate option payments of approximately $2.4 billion.
T-Mobile USA's nationwide network is currently present at around 51,000 sites of which the vast majority are leased from third parties.
The proceeds of the transaction have an immediate deleveraging effect, reducing Deutsche Telekom's net debt by the equivalent of around EUR 1.9 billion (US$2.4 billion) and thus strengthening its rating-relevant financial ratios. The net effect of the transaction will not impact on adjusted EBITDA of the 2012 financial year.
The deal was completed before the proposed merger between MetroPCS and T-Mobile USA, so that the funds can be tapped by the parent company.
Tags: [t-mobile usa] [crown castle] [USA]
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