Crown Castle Updates on Q2

Crown Castle International announces recent investments and second-quarter earnings schedule

July 13, 2005

3 Min Read

HOUSTON -- Crown Castle International Corp. (NYSE: CCI) announced today that it purchased 10.4 million shares of its common stock for $175.8 million during the second quarter of 2005 (inclusive of previously announced purchases), entered into a definitive agreement to acquire 467 towers from TrinTel Communications, Inc. ("TrinTel"), based in Irving, Texas, for approximately $145 million in cash and made an additional investment of $55 million in FiberTower Corporation ("FiberTower"), a privately-held provider of backhaul services.

"We continue to invest in opportunities we believe will drive long-term shareholder value," stated John P. Kelly, President and Chief Executive Officer of Crown Castle. "As we've stated previously, we analyze investments in our common shares similarly to the acquisition of other towers. I am excited that we've been able to commit $320 million to investments in our core tower business through the purchase of nearly 5% of our common shares outstanding as of March 31, 2005 and the acquisition of the TrinTel towers. Further, our additional investment in FiberTower, as part of a successful $150 million equity offering by FiberTower reflects our belief that there will be a significant demand for the backhaul solutions FiberTower provides to wireless carriers as the demand for additional wireless minutes of use increases. We remain focused on investing in opportunities that we believe will maximize long-term recurring cash flow per share and expanding the revenue sources on our towers."

Crown Castle purchased 10.4 million shares of its common stock for $175.8 million at an average price of $16.94 per share during the second quarter of 2005 (inclusive of previously announced purchases of 8.0 million shares for $131.5 million). Crown Castle's March 31, 2005 outstanding share count, pro forma for the announced purchases, is 213.6 million.

Crown Castle's acquisition of the TrinTel towers is expected to close on or about August 1, 2005. TrinTel's portfolio produces approximately $14.4 million in annualized site rental revenue, over 98% of which is derived from wireless telephony tenants, and approximately $9.0 million in annualized site rental gross margin. Further, the portfolio was built between 1998 and 2001 and is generally concentrated in key US markets such as Dallas-Fort Worth, Detroit and New Orleans.

FiberTower designs, deploys and operates radio-based backhaul networks for major wireless carriers. With this additional investment, Crown Castle now owns approximately 32%, on a fully diluted basis, of FiberTower and remains FiberTower's largest shareholder. Commensurate with Crown Castle's investment, FiberTower raised a total of $150 million through an equity offering, with investments from Oak Investment Partners and Affiliates, Tudor Investment Corp. and Affiliates, Goldman, Sachs & Co. and Meritech Capital Partners and Affiliates. In addition, Crown Castle signed an agreement with FiberTower to have leased space on at least 400 Crown Castle towers at the end of two years.

Crown Castle utilized its cash balances to purchase its common shares and make its investment in FiberTower. Crown Castle expects to utilize its cash balances and borrowings under a contemplated new revolving credit facility to acquire the TrinTel towers. Crown Castle expects the impact to its 2005 recurring cash flow (defined as Adjusted EBITDA less interest expense less sustaining capital expenditures) from the acquisition of the TrinTel towers to be minimal given the timing of the transaction and the expected increase in interest expense from additional borrowings. Crown Castle will update its 2005 Outlook, including the expected impact from this acquisition in its second quarter earnings release on August 2, 2005.

Crown Castle International Corp.

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