HOUSTON-Crown Castle International Corp. announced plans to redeem $200 million in convertible preferred stock held by an affiliate of General Electric Co.
Under terms of the agreement, CCI’s revolving credit facility has been bolstered to $325 million from $275 million. The company said it plans to use $150 million of borrowings and about $54 million of its existing cash to fund the redemption of the preferred stock. CCI said the redemption of the 8.25 percent Series A preferred stock eliminates the potential conversion of the stock into 7.44 million shares of common stock, or 3.5 percent of common shares outstanding.
CCI said it expects to draw approximately $295 million of its revolving credit facility by Dec. 16-the anticipated redemption date of the preferred stock. CCI also said that additional borrowings under the credit facility may be used for capital expenditures and acquisitions.
