Crown Castle (CCI 1.35%) 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. 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, Bank of America's Merrill Lynch, JPMorgan Chase unit J.P. Morgan Securities, and Barclays.
At the moment, Crown Castle has just over 291 million shares outstanding, and its stock trades at $73.98 per share.
