Both Leap Wireless International Inc. and Dobson Communications Corp. in unrelated deals said that with the help of Daniels & Associates, they are selling and then leasing back towers.
Leap is selling 142 towers to Mountain Union Telecom L.L.C. for $18 million. It will then lease back the sites for $1,500 per month per site.
“At the conclusion of a thorough review of our business operations, we decided that cell-tower ownership and management of collocation tenants should not be a primary strategic focus. The sale and lease arrangement with Mountain Union will enable us to utilize this network infrastructure in the most efficient and productive manner possible, and improve our cash position and financial strength,” said Leap President Doug Hutcheson.
Market watchers said Leap would likely use the cash to build out the markets where it bought spectrum in the recent governmental auction.
Dobson’s subsidiaries are selling 563 towers to Global Tower Partners for $87.5 million. Dobson Cellular Systems Inc. is selling 359 towers for $52.4 million and American Cellular Corp. is selling 204 towers for $35.1 million. Dobson signed a 10-year lease agreement with three five-year renewal options for an undisclosed amount.
“The acquisition of these towers marks a major achievement in the growth of our company from a middle-market tower company to a leader in the U.S. tower industry,” said Marc Ganzi, Global Tower’s chief executive officer.
Dobson previewed the sale during its fourth-quarter earnings call last month.
Daniels & Associates is a Denver-based telecommunications consulting firm.
