ATN International Closes $268 Million Tower Sale to Everest Affiliate
The asset sale of 214 Southwestern U.S. towers is designed to bolster ATN's liquidity and fund debt repayment as the company sharpens its focus on core connectivity markets.
ATN International (ATNI) completed the initial closing of its sale of a Southwestern U.S. tower portfolio to EIP Holdings IV, LLC, an affiliate of Everest Infrastructure Partners, for $268 million in cash. The transaction, structured as an asset purchase, covers a portfolio of 214 communications towers and related operations.
The deal carries a total potential value of up to $297 million. Subsequent closings of up to an additional $30 million are expected to occur over the next twelve months, contingent upon the achievement of specified construction and operational milestones at sites not transferred during the initial closing.
Naji Khoury, Chief Executive Officer of ATN, characterized the closing as a pivotal step in the company's financial strategy. "The initial closing of the Tower Portfolio Transaction represents an important milestone in building a stronger, more resilient ATN," Khoury said. "With net proceeds from the initial closing broadly the size of our annual Adjusted EBITDA, we are enhancing our liquidity and financial flexibility. This positions us to execute disciplined capital allocation and invest in opportunities that drive performance and deliver long-term stockholder value".
For Everest, the acquisition expands its footprint in a strategic region. Mike Mackey, President of Everest, noted that the towers offer "significant additional capacity" and that the company expects "strong future tenant growth across the portfolio". Everest, which has raised capital commitments in excess of $2.0 billion since its inception in 2015, views the deal as a way to partner with customers to invest in reliable wireless coverage throughout the Southwestern United States.
The divestiture aligns with a broader trend of wireless infrastructure consolidation. In September 2024, Verizon Communications (VZ) agreed to a $3.3 billion transaction with Vertical Bridge, structured as a prepaid lease for the rights to manage 6,339 towers. Such deals highlight the appetite among specialized tower operators to acquire assets from carriers seeking to monetize infrastructure and redeploy capital.
ATN intends to use the proceeds to strengthen its balance sheet, with plans to allocate approximately $70 million of the initial proceeds to repay borrowings under its CoBank revolving credit facility. The company expects the divestiture to reduce annualized U.S. Telecom segment revenue by approximately $5 million to $7 million and EBITDA by $10 million to $13 million. The transaction was subject to customary closing conditions, including the expiration of any waiting period under the Hart-Scott-Rodino Act.