Crown Castle Inc. · NYSE:CCI
Crown Castle — Crown Castle International — Debt Investor Presentation (June 2005)
18 slides from Crown Castle's debt investor presentation, Jun 9, 2005
Slide 1: Securitization Closing Announcement Analyst Call
Crown Castle International Corp. NYSE: CCI Securitization Closing Announcement Analyst Call June 9, 2005
Slide 2: Forward-Looking Information
Forward-Looking Forward-Looking Information Information This presentation contains forward-looking statements and information that are based on our management’s current expectations. Such statements include, but are not limited to, plans, projections and estimates regarding (i) growth in our busines
Slide 3: Overview of Notes
Overview Overview of of Notes Notes Ratings Amount Weighted Avg. Life Loan to Class (Moody's/Fitch) ($mm) (Yrs.) Asset Value A-FX Aaa / AAA $948.5 5.02 A-FL Aaa / AAA $250.0 5.02 B Aa2 / AA $233.8 5.02 C A2 / A $233.8 5.02 D Baa2 / BBB $233.9 5.02 Total $1,900.0 31% (1) Value is defined as asset val
Slide 4: Highlights
Highlights Highlights § All Notes are rated investment grade with 60%+ rated AAA/Aaa by Fitch and Moody’s § Significantly more flexibility to invest the cash flow (2) Q3 '02 Pro forma '05 produced in activities that are expected to maximize Interest per share $1.53 $0.50 recurring cash flow per shar
Slide 5: High Asset Quality
High High Asset Asset Quality Quality Overview of Borrowers § Borrowers holds substantially all US tower assets § 93% of consolidated site rental revenues and 94% of consolidated site rental gross margin § 75% of US towers have Verizon or Cingular as an anchor tenant § 96% of US tower revenues are d
Slide 6: Summary Transaction Terms
Summary Summary Transaction Transaction Terms Terms Offering: $1,900mm Senior Secured Tower Revenue Notes The Issuer Entity(1): Crown Castle Towers LLC (a bankruptcy remote SPE) Joint Bookrunners: Morgan Stanley & Co. Incorporated and Lehman Brothers Inc. Anticipated June 2010 Anticipated Repayment
Slide 7: Simplified Capital Structure
Simplified Simplified Capital Structure(1) Capital Structure (1) Crown Castle International Corp. $76.3mm high-yield and convertible notes (avg. coupon of 5.0%) $508.4mm preferred stock (avg. coupon of 7.0%) Crown Castle Crown Castle Towers LLC Crown Castle Australia (77.6%) $1.9B Senior Secured Mob
Slide 8: Cash Trap Mechanics
Cash Cash Trap Trap Mechanics Mechanics Issuer Entity Consolidated Ratio: Annualized Run Rate Net Annualized Adjusted Consolidated Tower Cash Flow(2) to EBITDA to Next 12 Months Next 12 Months Interest Consolidated Interest Expense Cash Trap Trigger: 1.75x(1) 2.0x(1) Early Amortization 1.45x N/A Tri
Slide 9: Focused on Shareholder Value
Focused Focused on on Shareholder Shareholder Value Value § Crown Castle believes the best way to drive shareholder value is to maximize recurring cash flow (RCF) per share(1) § Annualized second half ’05 outlook is approximately $0.92 per share of RCF § Expect RCF per share to grow approximately 20
Slide 10: Appendices
Appendices
Slide 11: Simplified Debt Structure
Simplified Simplified Debt Debt Structure Structure $ in millions 3/31/05 balance sheet Pro forma balance sheet(1) 4% Convertible Senior Notes due 2010 $88.5 Senior Secured Tower Revenue Notes, Series 2005-1 $1,900.0 10 3/8% Senior Discount Notes due 2011 $11.3 4% Convertible Senior Notes due 2010 $
Slide 12: Significant Interest Reduction
Significant Significant Interest Interest Reduction Reduction $ in millions Annualized run-rate (1) Pro forma interest expense 3/31/2005 Pro forma Senior Secured Tower Revenue Notes, Series 2005-1 $0.0 $93.3 4% Convertible Senior Notes due 2010 $3.5 $2.6 10 3/8% Senior Discount Notes due 2011 $1.2 $
Slide 13: 2005 Outlook
2005 2005 Outlook Outlook $ in millions Second Half 2005 Full Year 2005 Site rental revenue $289 to 299 $ 575 to 585 Site rental cost of operations (exclusive of depreciation, amortization and accretion) $88 to 98 $ 185 to 195 Site rental gross margin $193 to 208 $ 385 to 400 Adjusted EBITDA $155 to
Slide 14: Non-GAAP Financial Measures
Non-GAAP Non-GAAP Financial Financial Measures Measures This document includes presentations of Adjusted EBITDA and recurring cash flow, which are non-GAAP financial measures. Crown Castle defines Adjusted EBITDA as net income (loss) plus cumulative effect of change in accounting principle, income (
Slide 15: Non-GAAP Reconciliations
Non-GAAP Non-GAAP Reconciliations Reconciliations Adjusted EBITDA for the six months and the year ending December 31, 2005 is forecasted as follows: Second Half 2005 Full Year 2005 (dollars in millions) Net income (loss) $(68.0) to (34.3) $(434.0) to (389.5) Minority interests 0.0 to (2.0) 0.0 to (4
Slide 16: Non-GAAP Reconciliations
Non-GAAP Non-GAAP Reconciliations Reconciliations Recurring Cash Flow for the six months and the year ending December 31, 2005 is forecasted as follows: (dollars in millions) Second Half 2005 Full Year 2005 Adjusted EBITDA $155.0 to 165.0 $310.0 to 320.0 Less: Interest expense and amortization of de
Slide 17: Other Calculations
Other Other Calculations Calculations Sustaining Capital Expenditures for the six months and the year ending December 31, 2005 is forecasted as follows: Second Half 2005 Full Year 2005 (dollars in millions) Capital expenditures $24.0 to 48.0 $57.0 to 81.0 Less: Revenue enhancing on existing sites (9
Slide 18: Other Calculations
Other Other Calculations Calculations Adjusted EBITDA for the quarter ending September 30, 2002 is calculated as follows: (dollars in millions) Q3 2002 Net income (loss) ($65.6) Minority interests $0.1 Credit (provision) for income taxes $0.1 Interest expense and amortization of deferred financing c
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