American Tower completes acquisition of Global Tower for $4.8 bn

american-towersAmerican Tower Corporation has completed the acquisition of Global Tower Partners. Last month American Tower had entered into an agreement with Global Tower Partner (GTP) to acquire the latter for $4.8 billion. Of this total value, $3.3 billion was paid in cash and a debt value of $1.5 billion of GTP was assumed by American Tower.

To complete the acquisition American Tower used borrowings of $2.8 billion and $0.5 billion cash.

GTP is majority owned by Macquarie Infrastructure Partners together with minority partners including Dutch pension fund manager PGGM and management. GTP owns and operates approximately 5,400 domestic towers, 800 domestic property interests under third-party communications sites, and has management rights to over 9,000 domestic sites, which are primarily rooftop assets. In addition, GTP owns 500 communications sites in Costa Rica.

With this acquisition, American Tower expects that in aggregate, the portfolio will generate approximately $345 million in revenues and approximately $270 million of gross margin in 2014.

Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower, said: “GTP has constructed and acquired an outstanding U.S. portfolio of tower, rooftop and land assets, which is highly complementary to that of American Tower. Moreover, GTP’s management of these assets has been excellent, as confirmed through our rigorous due diligence process. GTP’s towers boast a high quality customer base, a strong position with respect to ground ownership and lease terms, and additional structural capacity available to facilitate future leasing activity.

With all four major domestic wireless carriers engaged in aggressive multi-year 4G LTE deployments, we believe our acquisition of GTP solidifies our path to achieving our strategic goals related to growing our AFFO over the next five years.”

The financial advisors for this transaction were Goldman, Sachs & Co. and EA Markets Securities, and the legal advisors were Clifford Chance and Sullivan & Worcester. GTP was advised by Deutsche Bank Securities Inc. as exclusive financial advisor.

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