HOUSTON, BEDMINSTER, N.J.-Bell Atlantic Mobile and Crown Castle International Corp. announced an agreement to form a joint venture company that will own, operate and actively advance the leasing space on BAM’s existing network of wireless towers throughout the country.
Additionally, the joint venture company will help Bell Atlantic Mobile respond to growing popularity of its DigitalChoice SingleRate service by building hundreds of new towers.
BAM expects to contribute 1,400 existing towers, valued at approximately $650 million. The joint venture also will raise $180 million of debt, to be distributed to BAM, said the companies. Crown Castle will own 62.3 percent and Bell Atlantic Mobile will own 37.7 percent of the new company.
Crown also announced it is offering-in a Rule 144A/Regulation S distribution-$200 million of its senior exchangeable pay-in-kind preferred stock. Net proceeds are anticipated to be used for the proposed joint venture, to repay outstanding bank borrowings and for general corporate purposes, said Crown.
CCIC has the option to exchange the exchangeable preferred stock for its senior subordinated pay-in-kind debentures. The offering is expected to close later this month.
