Summary
This 8-K filing from American Tower Corporation (AMT) on March 30, 2015, announces the completion of its significant acquisition of 11,448 wireless communication sites from Verizon Communications Inc. for approximately $5.053 billion in cash. This transaction substantially expands AMT's U.S. tower portfolio and deepens its relationship with a major wireless carrier. The acquisition was funded through a combination of stock and preferred stock offerings, credit facility borrowings, and cash on hand. As part of the deal, AMT will lease or sublease a majority of these sites from Verizon subsidiaries, with an option to purchase them later, and has directly acquired a smaller portion. A key component of the transaction includes a Master Prepaid Lease and Management Agreement, as well as Sale Site Master Lease and MPL Site Master Lease agreements, ensuring Verizon will continue to use these sites as a primary tenant with initial 10-year terms and renewal options.
Key Highlights
- 1Completion of acquisition of 11,448 wireless communication sites from Verizon for approximately $5.053 billion.
- 2The acquired sites are primarily leased or subleased from Verizon subsidiaries, with purchase options.
- 3A smaller portion of the sites were directly acquired by AMT.
- 4The transaction was funded through equity offerings, credit facilities, and cash.
- 5New long-term master lease agreements are in place with Verizon as the primary collocator.
- 6Verizon will have initial 10-year collocation leases with automatic renewal options.
- 7The number of sites is subject to post-closing adjustments.
- 8Financial statements and pro forma information related to the acquisition will be filed later via amendment.