That's why wireless will win. SpectraSite in $1.3 billion SBC tower deal.
Can you imagine a CLEC being granted 27 years lease on the copper wires of SBC? NO! They will prefer to build RT's and kill the CLECS.
SpectraSite in $1.3 billion SBC tower deal
By Reuters - 28 Aug 2000 14:05GMT
SpectraSite Communications said on Monday it would pay local phone company SBC Communications $1.3 billion for lease rights to 3,900 wireless communications towers, giving SpectraSite the largest tower portfolio in the top 50 U.S. markets.
The agreement gives SpectraSite exclusive lease rights to the SBC towers -- for 27 years, on average -- and an additional 800 new towers under a five-year build-to-suit deal, the companies said.
SpectraSite will pay $983 million in cash and $325 million in common stock for the lease rights. The tower operator will have the right to sublease the towers to third parties and has the option to buy the towers at the end of the leases.
In addition to the premium location of the towers, they have an average capacity of 3.75 tenants per tower, which represents the potential for extremely attractive recurring revenue on a per-tower basis, SpectraSite Chief Executive Stephen Clark said in a statement.
The deal is expected to close in increments starting in the fourth quarter, SpectraSite said.
The deal gives SpectraSite control over 9,000 towers in the United States, with significant concentrations in major markets such as Los Angeles, San Diego, San Francisco, Boston, Washington, Baltimore, Philadelphia, Dallas, St. Louis, Las Vegas, Chicago and Cleveland.
Separately, SpectraSite said the private equity fund Trimaran Fund had agreed to invest $75 million in the company, buying 3.4 million common shares at $22 each and warrants to purchase another 1.5 million shares at $28 each.
SpectraSite shares ended Friday at $21, off a 52-week high of $30-3/8 but up from a 52-week low of $7-3/8. |
