Acquisitive Phoenix Tower International has closed its purchase of some 600 mobile towers from T-Mobile US and a five-year credit facility to fund this and new M&A deals. The towerco aims to grow in the US, Latin America and the Caribbean.
Phoenix Tower International (PTI) has closed its acquisition of some 600 mobile towers from T-Mobile US (NYSE:TMUS) and a five-year credit facility to fund this and new purchases.
The pan-American towerco, owned by funds managed by Blackstone (NYSE:BX), agreed to acquire either the ownership or management rights to the towers in early August, gaining the exclusive right to manage and operate the sites from T-Mobile via its US subsidiaries.
PTI, advised by TD Securities and Locke Lord, and T-Mobile, advised by TAP Advisors and Lape Mansfield Nakasian & Gibson, declined to disclose the terms of the transaction.
The Florida-based towerco said in a statement that TD Securities also led the credit facility used to fund the deal, but did not disclose the terms. The loan will also provide additional financing for new tower development and acquisitions of wireless infrastructure in the US, the company said.
Dagan Kasavana (pictured), CEO of PTI, which also owns and operates wireless infrastructure in Latin America and the Caribbean, described the credit facility as “crucial” to the T-Mobile deal.
“Furthermore, TD’s facility provides additional financing for development and acquisition opportunities in the United States where we want to continue to build momentum after our transaction with T-Mobile.
“TD is a market leader in tower financing and we are excited to work with them in our continued expansion in the United States.”
Last week, PTI closed a US$45m five-year credit facility with the Scotiabank for its Dominican subsidiary, Phoenix Tower Dominicana.
This facility was used to finance the purchase of Teletower Dominicana, provide additional funds for new tower development and acquisitions in the Dominican Republic, and for other corporate purposes, the towerco said. Scotiabank was also the towerco’s financial adviser on the Teletower acquisition.
Founded in 2013, PTI is owned by funds controlled by Blackstone subsidiary Blackstone Tactical Opportunities. It has sought to grow both via M&A and organically. In June, it bought Brazilian site owner T4U and, in September 2014, it acquired American Tower’s Panama operations.
This May, the company sealed a US$32.1m seven-year credit facility for its local subsidiaries in Costa Rica and Panama. It agreed the loan with a consortium led by Banco General, which also included Towerbank and Metrobank.
These funds are being used to develop new towers, and to acquire infrastructure in Costa Rica and Panama.
