Shenandoah Telecommunications Company announced that it has entered into a Purchase and Sale Agreement with Vertical Bridge Holdco to sell its tower portfolio and operations to Vertical Bridge for $310.3 million in cash.
The deal is subject to customary closing conditions. And Vertical Bridge will pay Shentel the $310.3 million purchase price on the initial closing date. Subsequent closings will occur as closing conditions are met for any remaining sites. The company expects an initial closing in March 2024.
The company expects to pay up to $10 million in 2024 income taxes due to the gain on the sale after utilizing net operating loss forward. And the Shentel Tower Portfolio being sold consists of 226 tower portfolio sites1 and generated $18.6 million in revenue, $9.5 million of operating income and $11.6 million of Adjusted EBITDA last year.
KEY QUOTES:
“The proceeds from the sale of our Tower business will provide Shentel with additional growth capital to support the planned expansion of our Glo Fiber line of business to approximately 600,000 homes and business passings by the end of 2026. With the expected closing of this Transaction and the previously announced $356 million of committed financings supporting our pending acquisition of Horizon Telcom, we believe our capital structure is well balanced and will provide future financial flexibility.”
– Shentel’s President and CEO, Christopher E. French
“We are pleased to add these purpose-built broadband telephony towers to our growing portfolio. The towers are high quality assets with available capacity for additional tenants and are located in difficult areas to build new towers due to zoning restrictions and terrain challenges. The geographic concentration of the portfolio offers a unique opportunity for future deployment of existing and new technologies.”
– Vertical Bridge’s President and CEO, Ron Bizick
