MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI BRIEF: Former BOC Dep Beaudry Sees 2.75%-3% Rate In 2025

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Reports Verizon (Baa1/BBB+/A-) To Sell Towers Ahead Of AMT (Baa3/BBB-/BBB+) Lease Lapse

COMMUNICATIONS
  • BBG reported overnight that Verizon is considering selling 5,000-6,000 mobile-phone towers, potentially raising over USD 3bn. Discussions preliminary with no sale guaranteed.
  • In March 2015, Verizon sold exclusive 28yr lease and operation rights for 11,000 towers to American Tower Corp. for USD 5bn to fund airwave purchases and reduce debt while signing a 10yr agreement to lease back capacity on the towers from AMT (with an option to renew) so it seems a move to sell towers could correspond with the end of their sublease.
  • Announcements from the time noted that AMT will have fixed price purchase options to acquire towers based on their anticipated fair market values at the end of the 28yr lease terms. The BBG report last night does not mention AMT and notes that expected sources of interest include both infrastructure firms and strategic investors.
  • Telecom companies like AT&T have similarly sold towers to raise cash e.g. AT&T's USD 4.8bn sale of 9,700 towers to Crown Castle in 2013 to fund network upgrades.
  • USD 3bn represents <0.1x turns of Verizon’s FY23 leverage (2.6x). Were AMT to buy the towers it would represent ~0.4x turns of American Towers leverage (5.2x).
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.