AT&T and Peppertree Capital Agree to Tower Transaction Valued at up to $680 Million
DALLAS--(BUSINESS WIRE)--Oct 25, 2019--
AT&T Inc.* ( NYSE: T ) has announced that it agreed to a sale-leaseback of its remaining domestic company-owned wireless towers to Peppertree Capital Management, Inc. Under the terms of the sale, valued at up to $680 million, Peppertree will purchase more than 1,000 AT&T towers, and AT&T will lease back capacity on the towers from Peppertree.
The sale is consistent with AT&T’s plans to monetize non-strategic assets as it continues to pay down debt. Given the company’s confidence in reaching a net debt-to-adjusted EBITDA ratio in the 2.5x range by the end of this year, shareholders should expect that share buybacks will be in the mix in the fourth quarter of 2019, along with continued de-levering.
The transaction is subject to certain closing conditions, including due diligence. AT&T expects to close a substantial number of the towers by the end of the year and the remaining in subsequent closings.
AT&T holds its third-quarter earnings call at 8:30 a.m. ET on Monday, October 28. Shareholders can listen to a live broadcast via the internet at AT&T Investor Relations.
AT&T Inc. ( NYSE:T ) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim, Turner Classic Movies and others. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves nearly 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV services across 11 countries and territories in Latin America and the Caribbean, and is the fastest growing wireless provider in Mexico, serving consumers and businesses. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its AppNexus platform.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2019 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191025005376/en/
CONTACT: Erin McGrath
Phone: (214) 862-0651
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: INTERNET MOBILE/WIRELESS TECHNOLOGY ENTERTAINMENT TV AND RADIO
SOURCE: AT&T Inc.
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PUB: 10/25/2019 11:26 AM/DISC: 10/25/2019 11:26 AM