US towerco Crown Castle has sealed its US$2.4bn deal with T-Mobile USA to acquire rights to over 7,000 towers, according to a company statement. Crown Castle will have the exclusive right to lease and operate the T-Mobile towers for approximately 28…
US towerco Crown Castle has sealed its US$2.4bn deal with T-Mobile USA to acquire rights to over 7,000 towers, according to a company statement.
Crown Castle will have the exclusive right to lease and operate the T-Mobile towers for approximately 28 years.
At the end of the lease Crown Castle has the option to purchase the towers for a further payment of approximately US$2.4bn.
As part of the deal, agreed in September, T-Mobile will leaseback the towers for 10 years.
Crown Castle financed the deal through a mixture of cash on hand and debt financing. In early October the towerco priced a US$1.65bn bond carrying interest of 5.25% to help fund the transaction.
T-Mobile was advised by TAP Advisors and Deutsche Bank in the sale process.
T-Mobile agreed to merge with MetroPCS in early October. The two operators represent 17% and 5% of Crown Castle’s site rental revenues respectively.
