OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sept. 24, 2008--Sprint Nextel (NYSE:S) today announced it has completed the previously announced sale of approximately 3,080 towers to TowerCo for an estimated $670 million in cash, with the number of towers and sale price subject to post-close adjustment. The two companies have also signed a long-term leasing agreement for TowerCo to provide Sprint Nextel with wireless communications towers to support the company’s CDMA, iDEN and WiMAX networks.
"Leasing rather than owning these network facilities is a more efficient use of resources and allows us to focus more closely on our core business of providing communications services to our customers," said Bob Azzi, Sprint senior vice president - Network Services. "This deal also gives Sprint additional liquidity and greater flexibility in managing our business."
Richard Byrne, president and CEO of TowerCo, stated, "We are very excited that we have completed the purchase of the Sprint Nextel towers. Wireless carriers continue to grow and enhance their networks, creating strong demand for the towers we’ve just acquired. Given that demand and the major metropolitan market concentration of the towers, we have every expectation the portfolio will perform exceptionally well."
Sprint will account for the transaction with TowerCo as a financing arrangement. For GAAP purposes, the total final proceeds received will be treated as a long-term debt obligation.
Equity financing for this transaction was provided by Tailwind Capital, Soros Strategic Partners II LP, Stone Tower Equity Partners and Vulcan Capital.
In this transaction, Sprint Nextel was advised by Wachovia Capital Markets, LLC, Citi and the law firm of Jones Day. TowerCo was advised by UBS Investment Bank and the law firm of Paul, Weiss, Rifkind, Wharton and Garrison LLP.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving nearly 52 million customers at the end of the second quarter 2008; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.
TowerCo was founded in 2004 by Tailwind Capital and industry veterans Richard Byrne, Chief Executive Officer, and Scot Lloyd, Chief Operating Officer, to meet the infrastructure needs of wireless service providers by developing, owning and leasing communication towers. Soros Strategic Partners invested in TowerCo in December 2005. Currently TowerCo has exclusive contracts to build towers directly for carriers throughout the U.S. TowerCo is based in Cary, N.C. For additional information please visit www.towerco.com.
CONTACT: Sprint Media Contact: Scott Sloat, 301-951-2816 firstname.lastname@example.org or Sprint Investor Relations Contact: Bryan Fries, 800-259-3755 Investor.Relations@Sprint.com or TowerCo Contact: Noreen Allen, 919-573-8696 email@example.com SOURCE: Sprint