Crown Castle to sell $4.8bn in stock to finance Lightower acquisition

Crown Castle, from two of its offerings, are selling $3.25 billion worth of common shares and $1.5 billion worth of convertible preferred stock in order to help finance the Lightower buyout.

At $96.00 per share, the common share offering would create 33.6 million new shares which would increase share outstanding by 9.2% and at $1,000 per share, the convertible preferred stock creating 1.5 million new shares. 

“Crown Castle expects to use the net proceeds from these offerings, together with the net proceeds from additional debt financing, which may include additional borrowings under its revolving credit facility, to finance the consideration to be paid in connection with the Lightower transaction and to pay related fees and expenses," said the company in a statement.  

"If for any reason the Lightower transaction does not close, then Crown Castle expects to use the net proceeds from these offerings for general corporate purposes.”

The company have also granted underwriters Morgan Stanley, JP Morgan and Merrill Lynch, the option to purchase an additional 3,650,000 shares of common stock and up to an additional 150,000 shares of convertible preferred stock.

The offerings are due to close on 26 July 2017, subject to the usual closing procedures, with the Lightower deal due to complete bythe end of 2017.