Communications Sales to draw on revolver to fund Tower Cloud purchase

By Tali Rackner

Norfolk, Va., June 20 – Communications Sales & Leasing, Inc. plans to use borrowings under its revolving credit facility and cash on hand to fund the cash portion of its acquisition of Tower Cloud, Inc., according to a press release.

The transaction is expected to close by early in the fourth quarter.

Under the terms of the agreement, Tower Cloud shareholders will receive initial consideration of $230 million, including $180 million of cash and 1.9 million shares of Communications Sales common stock, the release said. Tower Cloud shareholders may also receive additional consideration contingent upon it achieving certain defined operational and financial milestones.

Communications Sales is a Little Rock, Ark.-based real estate investment trust. Tower Cloud is a provider of data transport services.

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