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Crown Castle to sell Australian subsidiary for $2 billion

Staff writer |
Crown Castle has signed a definitive agreement to sell its Australian subsidiary (CCAL) to a consortium of investors led by Macquarie Infrastructure and Real Assets for $2 billion in cash.

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This is $1.6 billion assuming an exchange rate of 0.80 US dollars to 1.0 Australian dollar. CCAL is 77.6% owned by Crown Castle.

Upon consummation of the transaction, Crown Castle expects to receive net proceeds of approximately $1.3 billion after accounting for its ownership interest, repayment of intercompany debt owed to it by CCAL and estimated transaction fees and expenses.

The transaction is expected to close during the second quarter of 2015. Crown Castle expects to use the net proceeds from the Transaction to finance its previously announced acquisition of Sunesys and for general corporate purposes, including the repayment of certain of its indebtedness.

CCAL was expected to contribute approximately $97 million to $102 million to Crown Castle's previously provided full year 2015 Outlook for Adjusted EBITDA of $2.145 billion to $2.160 billion.

Further, CCAL was expected to contribute approximately $58 million to $63 million to Crown Castle's previously provided full year 2015 Outlook for Adjusted Funds from Operations of $1.450 billion to $1.465 billion, respectively.

Crown Castle's full year 2015 Outlook was previously provided on April 22, 2015 and assumed an exchange rate of 0.76 US dollars to 1.0 Australian dollar for the second, third and fourth quarter of 2015.


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