Sprint Nextel 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."
Equity financing for this transaction was provided by Tailwind Capital, Soros Strategic Partners II LP, Stone Tower Equity Partners and Vulcan Capital.http://www.sprint.comhttp://www.towerco.com
- TowerCo was founded in 2004 by Tailwind Capital and industry veterans Richard Byrne, Chief Executive Officer, and Scot Lloyd, Chief Operating Officer. Soros Strategic Partners invested in TowerCo in December 2005.
