US Unwired sells towers to SBA Communications

(Telephony) Sprint PCS affiliate US Unwired has sold 127 of its towers to SBA Communications. While SBA does have the option to buy additional towers, its current holdings cost about $40 million and are located in Louisiana, Texas, and Arkansas.

By offloading the management of some of its towers, the carrier now can focus on enhancing its bottom line. “We have been thinking about this for the last six months considering the current status of the capital markets,” said Ed Moise, treasury operations manager at US Unwired.

“The Nasdaq has fallen and the credit market is tight. We were fortunate to have gotten a deal,” he continued.

Per the deal, SBA paid $313,000 for each tower. US Unwired then can lease space on the towers for an initial monthly rental fee of $1,500 per site. The companies' long-term lease agreement includes 4% annual increases in subsequent years.

In addition, the agreement provides SBA with the option to purchase 173 additional towers by April of this year and another 100 towers by December 31 under similar terms including the same price per tower of $313,000 and initial monthly rental fee of $1,500 per month.