HOUSTON-Crown Castle International Corp. will redeem its 10 5/8-percent senior discount notes due 2007 at a price of 105 percent of principal in an effort to reduce interest expenses and increase free cash flow. The redemption of the outstanding bonds, currently worth $239.2 million, will result in a $25.4 million reduction in annual cash interest expense.
“Pro forma for this transaction, we expect to end 2003 with more than $335 million in cash and cash equivalents plus approximately $300 million in availability under our senior credit facilities,” said John Kelly, Crown’s chief executive officer.
As a result of the transaction, to take place on or about July 7, Crown has adjusted its 2003 and 2004 financial forecasts and now expects net cash from operating activities to be between $169 million and $209 million for 2003 and between $140 million and $210 million for 2004. The company also now expects free cash flow for 2003 to be $29 million to $59 million and between $75 million and $105 million for 2004.
