AT&T will receive about $4.85 billion in cash of Crown Castle: stakes and opportunities.
With this deal, AT&T earns in financial flexibility with the goal to
continue to invest in its business, maintain a strong balance sheet and return
value to their shareholders.
It is official since last week; AT&T has agreed to lease the rights to
approximately 9,100 of its company-owned wireless towers to Crown Castle
International Corp.
In this dynamic, Crown Castle will also purchase approximately 600 AT&T
towers. This means about $4.85 billion in cash up-front proceeds for AT&T.
Connectikpeople may recall that, under the terms of the leases, Crown
Castle will have
exclusive rights to lease and operate approximately 9,100
AT&T towers. The average term of the lease rights is about 28 years. As the
leases expire, Crown Castle will have fixed price purchase options, totaling
approximately $4.2 billion, for these towers based on their estimated fair
market values at the end of the lease terms.
AT&T will sublease capacity on the towers from Crown Castle for a
minimum of 10 years for $1,900 per month per site, with annual rent increases
of 2 percent. AT&T has the option to renew up to a total of 50 years.
AT&T will also have access to additional reserve capacity on the towers for
future use. AT&T expects the additional capacity will help it continue to
meet growing demand for mobile Internet services. The transaction will have no
impact on the customer experience.
During the terms of the leases, Crown Castle will have full operating
rights to and responsibilities for the towers. Crown Castle’s rights will
include the ability to sublease other available space to other companies.
And finally, AT&T expects the transaction to close by year-end 2013,
subject to standard closing conditions.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most
honored companies in the world. Its
subsidiaries and affiliates – AT&T operating companies – are the providers
of AT&T services in the United States and internationally. With a powerful
array of network resources that includes the nation’s fastest and most reliable
4G LTE network, AT&T is a leading provider of wireless, Wi-Fi, high speed
Internet, voice and cloud-based services. A leader in mobile Internet, AT&T
also offers the best wireless coverage worldwide of any U.S. carrier, offering
the most wireless phones that work in the most countries. It also offers
advanced TV service with the AT&T U-verse® brand. The company’s
suite of IP-based business communications services is one of the most advanced
in the world.
