(Bloomberg) -- Verizon Communications Inc., the biggest wireless carrier in the US, has agreed to sell thousands of mobile phone towers to digital infrastructure firm Vertical Bridge.
The transaction values the portfolio of 6,339 towers at about $3.3 billion, according to a statement on Monday that confirmed an earlier Bloomberg News report.
Under terms of the deal, Verizon has entered into a 10-year agreement to lease back capacity on the towers, which are located in all 50 states and Washington, D.C., from Vertical Bridge. Verizon has an option to extend the term up to 50 years.
Caisse de Depot et Placement du Quebec, which has been a shareholder of Vertical Bridge since 2019, has committed capital to finance the transaction.
Bloomberg News reported in July that Verizon was exploring a sale of the towers and that the assets could draw interest from infrastructure firms.
Telecom giants have from time to time turned to their mobile-phone towers as a way to raise cash. Verizon agreed in September to acquire Frontier Communications Parent Inc. in a deal valued at $20 billion including debt.
Founded in 2014, Vertical Bridge is a private owner and operator of communications infrastructure and locations in the US. Its portfolio of over 500,000 sites includes more than 11,000 owned and master-leased towers.
JPMorgan Chase & Co. is acting as financial adviser to Verizon and Centerview Partners is working with Vertical Bridge.
©2024 Bloomberg L.P.
