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AT&T Announces $680 Million Transaction With Peppertree Capital

By Nick G. Foster

October 28, 2019

AT&T announced on Friday that it had come to terms with private equity firm Peppertree Capital Management, Inc. to purchase more than 1,000 cell towers for a transaction valued up to $680 million.

Who Is Peppertree Capital Management Inc.?

Peppertree Capital Management Inc. was founded in 2004 by a former investment banker and a tower industry professional. Earlier this year, Peppertree Capital completed their 76th investment in the communications industry by committing $300 million to the future growth of cell tower operator TowerCo. Peppertree Capital Management Inc.’s office is located in Chagrin Falls, Ohio (south east of Cleveland).

What Will AT&T Do With The Sales Proceeds?

AT&T stated in their press release that AT&T plans to use the sale proceeds to pay down debt. Their goal is to reach a net debt-to-adjusteed EBITDA ratio of 2.5x range by the end of this year.

It appears that the transaction will close in pieces with the first batch of towers transferring over to Peppertree Capital Management before the end of the year. Following batches of towers will transfer over subject to the closing of due diligence.

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Nick Foster Airwave Advisors

About Nick G. Foster

Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).

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