American Tower Corporation Agrees to Acquire 196 Towers from Cincinnati Bell Inc.
BOSTON & CINCINNATI–(BUSINESS WIRE)–Nov. 18, 2009– American Tower Corporation (NYSE: AMT) and Cincinnati Bell Inc. (NYSE: CBB) announced today that American Tower has entered into a definitive agreement to acquire 196 of Cincinnati Bell’s wireless communications towers for $100 million. The towers are located primarily in Ohio and Kentucky and currently average 2.1 tenants per tower. Cincinnati Bell will remain a tenant on all 196 towers pursuant to a long-term Master Lease Agreement.
“This transaction is a continuation of Cincinnati Bell’s strategy to improve liquidity and unlock shareholder value,” said Gary Wojtaszek, Chief Financial Officer of Cincinnati Bell. “We are pleased to expand our long-term relationship with a world-class operator such as American Tower, who is facilitating our ability to sell these non-core assets at an attractive valuation.”
“We are pleased that Cincinnati Bell has selected American Tower to own and operate this critical portion of its network infrastructure and we continue to actively pursue the acquisition of other strategic assets in the United States,” said Steven Marshall, President of American Tower’s US Tower Division. “We also look forward to broadening our partnership with Cincinnati Bell and supporting its ongoing network development and expansion in the future.”
The acquisition is expected to close on or about December 30, 2009, and the acquisition’s consideration is subject to certain closing adjustments. American Tower expects to use available cash on hand and cash equivalents to satisfy the consideration at closing.
Cincinnati Bell was advised in the transaction by Wells Fargo Securities.