Crown Castle Announces Acquisition of Tower Development Corporation
April 08 2016 - 3:15PM
Crown Castle International Corp. (NYSE:CCI) (“Crown Castle”)
announced today that it acquired Tower Development Corporation
(“TDC”) for approximately $461 million in cash on April 8, 2016.
TDC, a portfolio company of Berkshire Partners, owns and operates
336 towers in the U.S. and Puerto Rico with an average tenancy of
approximately two tenants per tower.
The transaction is expected to contribute
approximately $25 to $27 million to site rental gross margin in the
first full year of Crown Castle’s ownership and be immediately
accretive to Adjusted Funds from Operations per share. Crown
Castle funded the acquisition with available cash, including cash
on hand, cash from borrowings under its revolving credit facility
and cash from the sale of approximately 3.5 million net shares of
common stock at an average price of $85.52 per share
year-to-date.
“Our acquisition of TDC is another successful
milestone in our long-term relationship with Berkshire Partners,”
stated Ben Moreland, Crown Castle’s President and Chief Executive
Officer. “The TDC acquisition represents an attractive and
accretive investment opportunity that further enhances Crown
Castle’s portfolio of wireless infrastructure.”
ABOUT CROWN CASTLE
Crown Castle provides wireless carriers with the
infrastructure they need to keep people connected and businesses
running. With approximately 40,000 towers and 17,000 small cell
nodes supported by approximately 16,000 miles of fiber, Crown
Castle is the nation’s largest provider of shared wireless
infrastructure with a significant presence in the top 100 US
markets. For more information on Crown Castle, please visit
www.crowncastle.com.
CAUTIONARY LANGUAGE REGARDING
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking
statements that are based on Crown Castle management's current
expectations. Such statements include plans, projections and
estimates regarding TDC’s contribution to our financial results.
Such forward-looking statements are subject to certain risks,
uncertainties and assumptions, including prevailing market
conditions and other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected.
More information about potential risk factors that could affect
Crown Castle and its results is included in Crown Castle’s filings
with the SEC. The term “including,” and any variation thereof,
means “including, without limitation.”
Contacts: |
Jay Brown, CFO |
|
Son Nguyen, VP - Corporate Finance |
|
Crown Castle International Corp. |
|
713-570-3050 |
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