Summary
Crown Castle International Corp. (CCI) has officially completed its significant acquisition of 9,675 wireless communication sites from AT&T Inc. for approximately $4.827 billion in cash. This transaction, finalized on December 16, 2013, involves leasing or sub-leasing 9,048 sites and purchasing the remaining 627, bolstering CCI's existing portfolio of assets. The acquisition was funded through a combination of equity offerings, credit facility borrowings, and existing cash. As part of the agreement, CCI will lease collocation space at these newly acquired sites back to AT&T for a renewable ten-year term, with initial monthly rent of $1,900 per site, subject to a 2% annual increase. This strategic move is expected to significantly expand CCI's network infrastructure and generate substantial long-term recurring revenue, enhancing its position as a leading independent owner and operator of wireless infrastructure.
Key Highlights
- 1Completion of acquisition of 9,675 wireless communication sites from AT&T for $4.827 billion.
- 2Transaction includes a mix of leased/sub-leased (9,048 sites) and purchased (627 sites) properties.
- 3Acquisition funded by equity offerings, credit facility, and cash on hand.
- 4Agreement includes a ten-year leaseback for collocation space to AT&T at $1,900/month per site, with annual 2% increases.
- 5The acquired sites will be subject to post-closing adjustments.
- 6A portion of sites are under management arrangements pending authorization.
- 7This acquisition significantly expands Crown Castle's network infrastructure footprint.