Triton PCS (SunCom) Agrees to Sell Tower Assets to Global Signal

[TNDan21]

Triton PCS Agrees to Sell Tower Assets to Global Signal
Monday March 21, 9:12 am ET

BERWYN, Pa., March 21 /PRNewswire-FirstCall/ -- Triton PCS Holdings, Inc. (NYSE: TPC - News) today announced that it has agreed to sell 169 wireless communications towers to Global Signal, Inc. (NYSE: GSL - News) for $55.1 million. Subject to customary closing conditions, the transaction is expected to close in the second half of 2005.

The towers are primarily located in the Charlotte, Raleigh, and Greensboro markets of North Carolina, with additional sites located throughout North and South Carolina and Puerto Rico.

As part of the sale agreement, Triton and Global Signal will also sign at closing a 10-year master lease agreement at an initial monthly rate of $1,850 for each of the 169 towers, with three 5-year lease renewal options. Triton noted that the expense impact associated with the lease terms were considered in the 2005 outlook that it provided to investors on its year-end conference call on March 15, 2005.

After giving effect to this transaction, Triton will own approximately 70 wireless communications towers, and it has granted Global Signal an exclusive option to acquire these towers, together with an option on all new towers constructed by Triton for a one-year period.

Media Capital Advisors, Inc., a West Chester, Pennsylvania-based investment banking firm represented Triton PCS in the transaction.

Triton PCS Agrees to Sell Tower Assets to Global Signal

[agentHibby]

Ok I think Triton is running a Qwest Wireless downword spiral and it will be a mess whenever T-mobile does take over.

[Matt]

Hopefully TM will move in before it gets too messy. I think Sprint sold their towers to Global Signal as well, but I'd have to check that. Global does have over 4000 sites according to their website.

[TNDan21]

SunCom has had it. Look at what they've been doing the past little while. They sold off the Virgina network to Cingular in exchange for NC and Puerto Rico AT&T areas. They got some cash from this agreement which temporarly put SunCom in the black. If it wasn't for the Cingular/SunCom agreement Triton would have lost a lot of money this quarter.

Now they are selling off their towers in order to get another infusion of cash and save some money. The company is really hurting and it's showing. By the way Triton's stock sank 12.44% today. In less then a week the company's stock has dipped more then 35% and everybody seems to be selling off their shares of Triton. I think this is the quarter that finally killed SunCom. I'm fairly confident that by the end of this year T-Mobile will buy Triton PCS.

[Moosiebear]

Originally Posted by Matt

I think Sprint sold their towers to Global Signal as well, but I'd have to check that. Global does have over 4000 sites according to their website.

That is correct. GSL bought the Sprint towers...so with Sprint's and Triton's that brings them to an approximate total of 9800 owned towers...nevertheless what they manage. I think that puts them in 3rd place for largest tower company.

With regard to T-Mo buying Triton(SunCom), I think that is right on the money. T-Mo doesn't have a presence in NC and this would provide entry with plenty of spectrum....however I think they would still need a roaming agreement with Cingular for the rural and some suburban parts of NC and SC.