HOUSTON-Crown Castle International Corp. will attempt to raise $200 million through a public offering of convertible senior notes. The company will use the proceeds to redeem a portion of its 10 5/8-percent senior discount notes and to purchase or redeem all of its outstanding 12 3/4-percent senior exchangeable preferred stock due 2010 by Dec. 15.
“This offering is part of our continuing effort to reduce interest costs, increase free cash flow and strengthen the balance sheet,” said John Kelly, chief executive officer and president of Crown Castle. Following those transactions, the company will end the year with a cash balance of approximately $275 million, analysts from Bear Stearns & Co. Inc. predicted.
Meanwhile, Verizon Communications Inc. said it sold 4.9 million shares of Crown Castle to a private investment firm for $36 million. Verizon still holds about 10.7 million Crown Castle shares.
Shares of Verizon were trading at $39.85, and Crown Castle shares were at $8.03 early Thursday.
