“Verizon Makes a $3.3 Billion Deal to Help Protect Its Towering Dividend”
October 2, 2024
“…The company’s debt is on track to balloon further after it agreed to buy Frontier Communications (NASDAQ: FYBR) in a $20 billion all-cash deal. However, it recently made a counter move to cash in the value of its tower assets, which will bring in $3.3 billion to help enhance its financial flexibility… Verizon ended the second half of this year with $149.3 billion of total debt (and $122.8 billion of net debt)…
The company agreed to give Vertical Bridge the exclusive rights to lease, operate, and manage 6,339 wireless communications towers across the U.S. for $3.3 billion. The deal’s structure is a prepaid lease with upfront proceeds of about $2.8 billion in cash. Verizon will lease back the capacity on the towers for at least 10 years…”
https://finance.yahoo.com/news/verizon-makes-3-3-billion-092900660.html