US-based regional wireless carrier NTelos has agreed to sell up to 103 wireless towers to private equity firm Grain Management in a US$41m sale-and-leaseback transaction. As part of the agreement, the company will lease the towers, which are located in…
US-based regional wireless carrier NTelos has agreed to sell up to 103 wireless towers to private equity firm Grain Management in a US$41m sale-and-leaseback transaction.
As part of the agreement, the company will lease the towers, which are located in its western markets, on a long-term basis and will have access to reserve capacity for its future use.
Media Venture Partners acted as exclusive financial adviser to NTelos on the transaction.
Proceeds from the sale, which is expected to close in multiple instalments in 2015, subject to due diligence and customary approvals, will be used for general purposes.
“We expect the proceeds from the sale will enhance our financial flexibility to continue executing our strategic refocus on our western markets,” NTelos chairman Michael Huber said.
In early December, the company announced it would shift its focus on its western markets and agreed to sell its 1,900 MHz PCS wireless spectrum licences in eastern Virginia to T-Mobile US for US$56m.
The company aims to capitalise on the strong operating performance and favourable competitive position for its retail offering in West Virginia and western Virginia, where it recently extended a commercial partnership with Sprint Corp until 2022.
NTelos provides voice and data coverage for approximately 282,100 retail subscribers based in Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky.
