Crown Castle Announces Agreement to Acquire Wilcon
April 17 2017 - 9:00AM
Crown Castle International Corp. (NYSE:CCI) (“Crown Castle”)
announced today that it has entered into a definitive agreement to
acquire privately-held Wilcon Holdings LLC (“Wilcon”) for
approximately $600 million (subject to certain limited adjustments)
from Pamlico Capital and other unit holders of Wilcon. Wilcon
is a fiber services provider that owns approximately 1,900 route
miles of fiber, primarily in Los Angeles and San Diego. Pro
forma for the proposed acquisition, Crown Castle will own or have
rights to over 28,000 route miles of fiber.
“The acquisition of Wilcon provides us an
extensive set of dense metro fiber assets that will enable us to
continue to deliver fiber-fed small cell solutions for our wireless
customers in our fastest growing and most active market,” said Jay
Brown, Crown Castle’s Chief Executive Officer. “With its
complementary footprint, we expect to benefit in the near-term by
leveraging Wilcon’s assets to execute on our substantial and
growing pipeline of small cells. Longer-term, we believe
Wilcon’s well-located assets across the greater Los Angeles and San
Diego metro areas, combined with its currently low utilization
rate, provide us with a long runway of growth opportunities to
pursue small cell deployments for our wireless customers as they
seek to improve and enhance their networks to meet growing demand
for high-speed, high-capacity wireless services.”
Crown Castle expects the acquisition to close in
the third quarter of 2017. In the first year of Crown
Castle’s ownership, the transaction is expected to contribute
approximately $40 million to gross margin and approximately $10
million of general and administrative expenses. Crown Castle
anticipates financing the transaction consistent with maintaining
its current investment grade credit metrics. Supplemental
materials related to the transaction have been posted on the Crown
Castle website at http://investor.crowncastle.com.
ABOUT CROWN CASTLE
Crown Castle provides wireless carriers with the
infrastructure they need to keep people connected and businesses
running. With approximately 40,000 towers and 26,500 route
miles of fiber supporting small cells, Crown Castle is the nation's
largest provider of shared wireless infrastructure with a
significant presence in the top 100 U.S. markets.
Cautionary Language Regarding
Forward-Looking Statements
This press release contains forward-looking
statements that are based on Crown Castle management’s
expectations. Such statements include plans, projections and
estimates regarding (1) the anticipated Wilcon acquisition,
including timing and financing thereof, (2) potential benefits of
the Wilcon acquisition, including the contribution to or impact on
Crown Castle’s financial or operating results, including gross
margin and general and administrative expenses, (3) Crown Castle’s
fiber assets, (4) demand for small cells, (5) wireless carrier
network deployments, investment and expenditures, (6) mobile data
demand and growth, (7) demand for, potential growth of and
opportunities which may be derived from the Wilcon assets, and (8)
Crown Castle’s investment grade rating and credit metrics. Such
forward-looking statements are subject to certain risks,
uncertainties and assumptions, including prevailing market
conditions and other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected.
More information about potential risk factors that could affect
Crown Castle and its results is included in Crown Castle’s filings
with the Securities and Exchange Commission. The term “including,”
and any variation thereof, means “including, without
limitation.”
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Contacts: |
Dan
Schlanger, CFO |
|
Son
Nguyen, VP & Treasurer |
|
Crown
Castle International Corp. |
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713-570-3050 |
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