FORT LEE, N.J.-MobileMedia Corp. announced it signed a definitive agreement to sell its 163 transmission towers to Pinnacle Towers Inc.
The $170 million sale allows MobileMedia to retain ownership of the transmitters, antennas and other equipment on the towers through a leaseback arrangement over an initial period of 15 years, at an aggregate annual rental of $10.7 million.
MobileMedia owns about 700 transmitters for the paging transmission needs of its subsidiary, MobileMedia Communications Inc., which does business as MobileComm. The company is restructuring its operations under Chapter 11 bankruptcy protection.
The company said it is selling the towers to take advantage of the strong demand for towers as well as to focus on its core paging business. Its Restructuring Chairman Joseph Bondi said the proceeds of the sale will help MobileMedia reach a “plan of reorganization with our creditors.”