SARASOTA, Fla.-Global Signal Inc. filed a shelf registration statement with the Securities and Exchange Commission that calls for the company to sell up to $1 billion in debt securities, common stock, preferred stock, depositary shares or warrants.
A shelf registration allows a company to file one registration statement to cover several issues and go to market when conditions are most favorable.
The company said it plans to use any proceeds for working capital and general corporate purposes, including repayment or refinancing of outstanding indebtedness as well as financing of potential future acquisitions.
Global Signal recently closed its $1.2 billion transaction with Sprint Corp., which gives it exclusive rights to lease or operate about 6,600 of the carrier’s towers for a period of 32 years. Speculation about further tower industry consolidation has been fueled by the announced mega-merger between two of the industry’s largest players, American Tower Corp. and SpectraSite, last month.
In related news, RBC Capital Markets analysts Jonathan Atkin and David Coleman initiated coverage on Global Signal this week with an outperform rating in the speculative risk category and a $36 price target. RBC noted several factors for its rating, including the company’s discount vs. peers on the basis of EBITDA and OpFCF multiples; its improving revenue mix that reduces its exposure to the paging market; its potential to outperform estimates; significant recent insider buying that suggests management confidence in the company’s operating future; and the potential for a dividend increase.
