Verizon Strikes $3.3 Billion Tower Deal with Vertical Bridge — Update

By Dean Seal

Verizon Communications reached a $3.3 billion deal to sell thousands of wireless communications towers across the country to Vertical Bridge and lease them back over at least 10 years.

The two companies Monday said the agreement is structured as a prepaid lease, with upfront payments of about $2.8 billion in cash. The deal allows Verizon to lease back capacity on 6,339 towers from Vertical Bridge as anchor tenant, with options to extend the lease term by up to 50 years.

The agreement builds on Verizon's existing joint venture with Vertical Bridge and is aimed at driving down tower-related costs, the companies said.

Vertical Bridge Chief Executive Ron Bizick called the pact the largest U.S. tower transaction in almost a decade.

Boca Raton, Fla.-based Vertical Bridge is a real estate investment trust formed in 2014 that owns and manages telecommunications towers. It is majority owned by the publicly traded investment firm DigitalBridge and also has backing from CDPQ, the manager of public and parapublic pension plans in Quebec.

DigitalBridge and CDPQ have each committed capital to finance the transaction, which is expected to close by the end of the year.

Verizon shares ticked up 0.4% to $45.07 in pre-open trading, putting them on track to open at a two-year high.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

September 30, 2024 08:47 ET (12:47 GMT)

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