Wednesday, wireless and wireline communications services provider Sprint Nextel (S) said that it agreed to sell about 3,300 towers to TowerCo for about $670 million in cash.
The company also announced that it has signed a long term leading agreement where TowerCo will provide Sprint Nextel with wireless communications towers to support its networks.
The specific number of towers and final purchase price will be determined at closing. The deal, subject to customary closing conditions, is expected to close in 90 days.
Bob Azzi, Sprint Nextel's senior vice president of field engineering and operations said that the deal would enable the company better focus on core business of providing communications services and provide the company with additional liquidity.
Tailwind Capital, Soros Strategic Partners II LP, Stone Tower Equity Partners and Vulcan Capital will provide equity financing for this transaction.
Wachovia Capital Markets, LLC, Citi and the law firm of Jones Day advised Sprint Nextel. UBS INVESTMENT BANK and the law firm of Paul, Weiss, Rifkind, Wharton and Garrison LLP advised Cary, N.C.-based TowerCo.
S rose $0.09 or 1.07% and closed Wednesday's regular trading session at $8.51.
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