8-KAcquisitions & DispositionsMaterial AgreementsRegulation FD+1

CROWN CASTLE INC. 8-K Report, Agreement Terminated (Sep 7, 2004)

Filed September 7, 2004For Securities:CCI

Summary

Crown Castle International Corp. (CCI) filed this Form 8-K on September 7, 2004, to report on the completion of a significant asset disposition and a related material agreement termination. On August 31, 2004, the company finalized the sale of its UK subsidiary, CCUK, to NGG Telecoms Investment Limited for approximately $2.023 billion in cash. This strategic divestiture marks a substantial change in the company's operational footprint and financial structure. The substantial proceeds from the CCUK sale were immediately utilized to fully repay CCI's outstanding $1.3 billion credit facility. Consequently, the Amended and Restated Credit and Exchange Offer Agreement dated October 10, 2003, was terminated. This deleveraging action significantly reduces the company's debt obligations and simplifies its capital structure, providing a stronger financial foundation.

Key Highlights

  • 1Completion of the sale of Crown Castle's UK subsidiary (CCUK) to NGG Telecoms Investment Limited for approximately $2.023 billion.
  • 2The sale closed on August 31, 2004.
  • 3Approximately $1.3 billion of the sale proceeds were used to fully repay the company's 2000 Credit Facility.
  • 4Termination of the Amended and Restated Credit and Exchange Offer Agreement due to the full repayment of the credit facility.
  • 5The company has filed unaudited pro forma condensed consolidated financial information reflecting the impact of these transactions.
  • 6A press release dated August 31, 2004, was issued to announce these key events.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of the sale of Crown Castle's UK subsidiary (CCUK) and the subsequent termination of a material credit facility agreement due to the full repayment of outstanding debt.

Crown Castle International Corp. received approximately $2.023 billion in cash for the sale of its UK subsidiary, CCUK, including intercompany debt, after preliminary working capital adjustments.

Approximately $1.3 billion of the proceeds from the CCUK sale were used to fully repay the company's 2000 Credit Facility.

The full repayment of the credit facility led to its termination and significantly reduced Crown Castle's debt obligations. This deleveraging action simplifies the company's capital structure and strengthens its financial position.