Saturday, August 10, 2013

American Tower Acquires Tower Sites in Mexico and Brazil

American Tower Corporation will acquire up to 2,790 towers in Brazil and 1,666 towers in Mexico from NII Holdings for approximately $413 million and $398 million, respectively.

American Tower said the majority of the portfolio consists of towers located in and around major population areas and along major highways. On average, the towers have a tenancy ratio of just over one tenant per tower, with Nextel Brazil or Nextel Mexico as the primary tenant, providing significant opportunities for future site leasing growth.


Both Nextel Brazil and Nextel Mexico have agreed to leaseback the towers from American Tower for a minimum 12-year initial lease term with additional renewal options thereafter. NII International Telecom S.C.A, a subsidiary of NII based in Luxembourg, has agreed to provide certain credit support with respect to the obligations of Nextel Brazil.

"Through this acquisition, American Tower will gain significant incremental scale in our Mexican and Brazilian operations, and we anticipate leveraging the strong demand backdrop in both markets to drive meaningful revenue and cash flow growth for many years to come," stated Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower.

American Tower currently owns and operates over 56,000 communications sites in the United States, Brazil, Chile, Colombia, Germany, Ghana, India, Mexico, Peru, South Africa and Uganda.

http://www.americantower.com

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