Crown Castle details lead banks, price talk on $600 million term loan

By Sara Rosenberg

New York, Jan. 29 - Crown Castle Operating Co.'s proposed $600 million term loan B is being led by joint lead arrangers and joint bookrunners Morgan Stanley, RBS Securities and JPMorgan, according to an 8-K filed with the Securities and Exchange Commission Monday.

The seven-year term loan B is expected to carry an interest rate of Libor plus 200 basis points, provided that if the company does not get the deal rated within 30 days or if the deal receives ratings that are lower than B2 with a stable outlook and BB with a negative outlook, then pricing will increase to Libor plus 225 bps.

A bank meeting date for the term loan B is still unavailable, a market source said.

Proceeds from the term loan will be used to fund a share repurchase plan, under which the company is buying 17.7 million of its common shares for $600 million in cash from Fortress Investment Funds, Greenhill Capital Partners, LLC and Abrams Capital, LLC.

The share repurchase is expected to close on Jan. 26.

Crown Castle is a Houston-based provider of broadcast, data and wireless communications infrastructure services.

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