American Tower today announced that it will acquire Global Tower Partners (GTP) and related companies for $4.8 billion.
GTP is majority owned by Macquarie Infrastructure Partners together with minority partners including Dutch pension fund manager PGGM and management. The company owns and operates approximately 5,400 domestic towers, 800 domestic property interests under third-party communications sites, and has management rights to over 9,000 domestic sites, which are primarily rooftop assets. In addition, GTP owns 500 communications sites in Costa Rica.
According to a press release, the purchase price is expected to be satisfied with approximately $3.3 billion in cash and the assumption of approximately $1.5 billion of existing debt.
American Tower said it expects to use cash on hand and borrowing capacity under its existing revolving credit facilities, as supplemented by additional sources of debt financing, to satisfy the cash consideration for this acquisition and other previously announced acquisitions.
Jim Taiclet, chairman, president and CEO of American Tower, said in a statement that GTP's portfolio is highly complementary to that of American Tower's exisiting business.
The transaction is subject closing conditions and is expected to close in the fourth quarter of 2013.