ROSEVILLE, Calif., Oct. 10 /PRNewswire-FirstCall/ -- Leading independent
communications holding company SureWest Communications (Nasdaq: SURW)
announced today that it has entered into a definitive agreement to sell its
more than 50 owned wireless communications towers to Global Tower Partners.
Completion of the transaction is not subject to financing.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050908/SFSUREWESTLOGO)
The purchase price is based on tower cash flow and is payable with respect
to commenced tenant leases. SureWest expects that the final aggregate purchase
price will be in the range of $9.5 to $10.2 million.
The transaction, the initial closing of which is expected to close in the
fourth quarter 2008, and at which a substantial portion of the purchase price
is payable, is subject to customary closing conditions and regulatory
approvals. The company expects to use the net proceeds from the transaction to
continue the expansion of its high performing fiber-to-the-home (FTTH)
broadband network in both its Sacramento and Kansas City regions. UBS
Investment Bank acted as the exclusive financial advisor to SureWest on its
tower sale.
Steve Oldham, SureWest's president and chief executive officer, said, 'We
are pleased to have found the right buyer for our towers, which was the
appropriate move for the company following the sale of our wireless assets to
Verizon Wireless earlier this year. We are executing on our plan to divest
non-core assets from the business and focus on providing our customers with
the most advanced telephone, Internet and television services. The net
proceeds from the towers will continue to enhance our financial flexibility as
we expand our fiber-based triple-play offerings to a broader service area.'
'The SureWest acquisition affirms our commitment to being one of the
leading acquirers of premier tower locations in the United States,' said Marc
C. Ganzi, chief executive officer, Global Tower Partners. 'We believe these
unique locations will address the growing needs of our customers in enhancing
their coverage and network quality throughout Northern California.'
In addition to divesting the assets of its Wireless business for $69.0
million, SureWest sold its Directory Publishing business to GateHouse Media
for $110 million in early 2007.
