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.