American Tower Paying $4.8 Billion for 15,200 Towers in USA
American Tower Corp has announced that it paying US$4.8 billion to buy MIP
Tower Holdings, which through a subsidiary company owns or manages around 15,200 towers across the USA.
MIP Tower Holdings is the parent company of Global Tower Partners (GTP), and related companies and is majority owned by Macquarie Infrastructure Partners.
GTP directly owns and operates approximately 5,400 towers in the USA. It also has 800 domestic property interests under third-party communications sites, and has management rights to over 9,000 domestic sites, which are primarily rooftop assets. In addition, it owns 500 communications sites in Costa Rica.
In total, the deal increases the company's portfolio by around 15,700 towers in the United States and Costa Rica. American Tower currently manages around 56,000 towers worldwide.
American Tower said that the purchase price is expected to be satisfied with approximately $3.3 billion in cash and the assumption of approximately $1.5 billion of existing indebtedness.
American Tower expects that in aggregate, in 2014, the portfolio will generate approximately $345 million in revenues and approximately $270 million of gross margin.
Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower, said: "GTP has constructed and acquired an outstanding U.S. portfolio of tower, rooftop and land assets, which is highly complementary to that of American Tower. Moreover, GTP's management of these assets has been excellent, as confirmed through our rigorous due diligence process. GTP's towers boast a high quality customer base, a strong position with respect to ground ownership and lease terms, and additional structural capacity available to facilitate future leasing activity."
"With all four major domestic wireless carriers engaged in aggressive multi-year 4G LTE deployments, we believe our acquisition of GTP solidifies our path to achieving our strategic goals related to growing our AFFO over the next five years."
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2013.