AT&T moves cell tower portfolio to Crown Castle for $4.85B

|About: AT&T Inc. (T)|By:, SA News Editor

Cashing in on the consolidation action among cell phone tower operators, AT&T (T) agrees to lease/sell its tower portfolio to Crown Castle International (CCI) for $4.85B in upfront proceeds.

Crown Castle will have the rights to lease about 9.1K AT&T towers and purchase roughly 600 others. The average term of the lease rights is about 28 years, after which Crown Castle has an option to purchase the towers for approximately $4.2B. AT&T will sublease space on the towers for at least 10 years with an option to renew up to a total of 50 years.

AT&T had put the portfolio on the block in September, and two weeks ago a deal with Crown Castle was reported to be close.