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.
News of the redemption did not seem to shake the company’s stock, which was trading up slightly at $27.48 after the news.
