Crown Castle Prices Stock Offerings

Crown Castle (NYSE: CCI  ) has slapped a price tag on its two fresh share offerings. The company is selling its common stock at $74.00 per share to the market in an underwritten public issue, an offering in which it will float 36 million shares. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 5.4 million shares.

Meanwhile, Crown Castle is concurrently offering 8.5 million shares of series A mandatory convertible stock, which have been priced at $100.00 per share. The underwriters have been granted a 30-day purchase option for up to an additional 1.275 million shares of the convertibles.

All told, the firm anticipates net proceeds of roughly $2.59 billion from the common stock issue, and $825.5 million from the convertibles offering.

The issues are being floated to help finance the company's recent cellular tower lease and purchase deal with AT&T (NYSE: T  ) . Earlier this week, Crown Castle reached agreement to lease around 9,100 of the towers and buy roughly 600 outright from the telecom giant for $4.85 billion in cash. 

For both the common and convertible stock issues, the joint book-running managers are Morgan Stanley (NYSE: MS  ) , Bank of America's (NYSE: BAC  ) Merrill Lynch, JPMorgan Chase (NYSE: JPM  ) unit J.P. Morgan Securities, and Barclays (NYSE: BCS  ) .

At the moment, Crown Castle has just over 291 million shares outstanding, and its stock trades at $73.98 per share.


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Eric Volkman

Eric has been writing about stocks and finance since the mid-1990s, when he lived in Prague, Czech Republic. Over the course of a varied career, he has also been a radio newscaster, an investment banker, and a bass player in a selection of rock and roll bands. A native New Yorker, he currently lives in Los Angeles.

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Crown Castle Inter… CAPS Rating: **