Crown Castle Completes Bell Atlantic Mobile Transaction
APRIL 1, 1999 HOUSTON, TEXAS Crown Castle International Corp. (NASDAQ:TWRS) announced that on March 31, 1999, it closed its transaction with Bell Atlantic Mobile involving approximately 1,460 wireless communications towers and a five-year exclusive 'build-to-suit' program. Of the 1,460 towers, 56 towers are currently under construction and expected to be completed by the end of the second quarter. The transaction called for the establishment of a joint venture to own and operate the towers. The joint venture began operations today under the name Crown Atlantic Holding Company L.L.C. Crown Castle owns approximately 61.5% and Bell Atlantic Mobile owns approximately 38.5% of Crown Atlantic Holding Company L.L.C., with Crown Castle having the opportunity to significantly increase its stake after the fourth anniversary of the joint venture. The transaction was valued at approximately $660 million.
"We are pleased to have closed this transaction as expected in the first quarter. The joint venture company is ready to commence marketing and managing all the acquired towers and to begin the construction of hundreds of build-to-suit towers for the joint venture over the next five years," stated Ted B. Miller, Jr., CEO of Crown Castle International. "Since we announced the Bell Atlantic Mobile agreement last December, our integration teams have proceeded quickly to make the appropriate changes to processes, people and technology related to this unprecedented partnership. Our rapid transition integration model enables us to incorporate new assets and new geographic regions promptly as they are acquired, in order to quickly realize the marketing potential of the new assets."
Crown Atlantic Holding Company, L.L.C. is headed by Brian D. Jacks, formerly the Executive Network Director of the New York Metro market for Bell Atlantic Mobile. The joint venture will be responsible for site acquisition, site design and site construction activities as well as for offering collocation opportunities on its wireless tower portfolio. Bell Atlantic Mobile will lease back space on the towers under a global lease agreement. The joint venture will operate regional offices in key markets throughout the region covered by Bell Atlantic Mobiles former tower portfolio. Mr. Jacks commented, "I am pleased with how smoothly the integration process has proceeded. We are ready to begin marketing and managing this high quality tower network on schedule." Inquiries regarding the availability of space on towers can be referred to 1-877-4TOWERS.
With this transaction, and inclusive of the previously announced BellSouth, Powertel and One 2 One transactions, Crown Castle International will own, operate, and manage over 6,000 wireless communications towers internationally. In the United States, Crown Castle will offer coverage in 21 of the top 50 markets, including 12 of the top 15 markets east of the Mississippi. Additionally in the UK, Crown Castle offers universal coverage in broadcast and wireless telephony.
Crown Crown Castle International Corp. is a leading provider of communication sites and wireless network services and provides an array of related infrastructure and network support services to the wireless communications and radio and television broadcasting industries in the United States and United Kingdom. Pro forma for the previously announced BellSouth, One 2 One, and Powertel transactions, Crown Castle International owns, operates and manages over 6,000 wireless communication towers internationally. For more information on Crown Castle International, visit: www.crowncastle.com.
This press release contains various forward-looking statements and information that are based on managements belief as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.