Press release
As Part of Its Focus on Financial Health and Customer Affordability, PG&E Agrees to $973 Million Sale of Transmission Tower Wireless Licenses to SBA Communications Corporation
PG&E and SBA Communications Corporation Also Enter into Strategic Relationship to Market and Sublicense Additional Wireless Attachment Locations on Electric
About this update from Sba Communications Corporation
[{"type":"text","content":"\nPG&E and SBA Communications Corporation Also Enter into Strategic Relationship to Market and Sublicense Additional Wireless Attachment Locations on Electric Transmission Assets \n\nAgreement Will Further Strengthen PG&E’s Balance Sheet and Portion of Proceeds Will Benefit Electric Customers \n\n SAN FRANCISCO--(BUSINESS WIRE)--\nToday, Pacific Gas and Electric Company (PG&E) announced that it has entered into a definitive agreement with a wholly owned subsidiary of SBA Communications Corporation (Nasdaq: SBAC) (SBA or SBA Communications) to sell its license agreements with wireless providers that attach their equipment to certain electric transmission towers and other utility structures. The arrangement also allows the SBA subsidiary to continue to market and sublicense access to the towers and structures to additional wireless providers and PG&E will receive a portion of that future revenue. The sale of these licenses, which apply to over 700 towers, is expected to generate $973 million in initial proceeds, subject to customary closing adjustments. PG&E is not selling any transmission towers as part of this transaction.\n\nPG&E is also entering into a strategic relationship with SBA, through SBA’s wholly owned subsidiary, to sublicense and market equipment at additional attachment locations on up to 28,000 transmission towers across PG&E’s extensive network. Through this arrangement, PG&E will receive a portion of future revenues from these sublicensed equipment attachment locations.\n\nOverall, PG&E expects the proceeds from this agreement to help further reduce its financing needs and strengthen its financial position while also benefiting customers, who will receive a significant portion of the sale proceeds in the form of lower monthly bills as well as a portion of any future revenues from additional attachment locations.\n\n“When we emerged from Chapter 11, we made a commitment to achieve financial stability and bolster our overall financial health and we’re delivering on that objective. Strategically selling non-core assets like these is one way we’re continuing to follow through on that commitment, reduce our financing needs and strengthen our balance sheet,” said Chris Foster, PG&E Interim Chief Financial Officer.\n\n“This transaction adds a significant portfolio of high quality, exclusive locations to our outstanding...