SBA Agrees to Buy TowerCo for $1.2B (6/26/12)
SBA Communications agreed to a merger with certain affiliates of TowerCo that own 3,252 tower sites in 47 states across the United States and Puerto Rico. SBA will pay $1.2 billion in cash and 4.6 million shares of SBA class A common stock, implying a total transaction value of $1.45 billion based on SBA’s average three-day closing price of $54.48 as of June 22.
The cash consideration shall be paid from a combination of cash on hand, existing credit facilities and up to $900 million in financing commitments from J.P. Morgan. The transaction, subject to customary closing conditions, is expected to close in the fourth quarter.
“We are very pleased with the opportunity to acquire the TowerCo assets,” said Jeffrey A. Stoops, SBA’s president and CEO. “We believe the TowerCo assets are high quality, well located and have ample capacity for additional tenants. The towers are in excellent shape from a legal, systems and operational perspective, and will be readily integrated into our existing portfolio.”
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