Shentel Announces Sale of Tower Portfolio to Vertical Bridge for USD 310.3 Million

Edinburg-headquartered Shenandoah Telecommunications (Shentel) announced that it has entered into a Purchase and Sale Agreement with Vertical Bridge Holdco to sell its tower portfolio and operations for USD 310.3 million in cash. Vertical Bridge is an operator of communications infrastructure and locations in the United States.

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Transaction Details

The Shentel Tower Portfolio being sold consists of 226 tower sites, including 218 macro cellular towers and 8 small cell sites, which generated USD 18.6 million in revenue, USD 9.5 million in operating income, and USD 11.6 million in Adjusted EBITDA in 2023. The transaction excludes one macro cellular tower that Shentel will retain, as Shentel announced last Friday.

Reportedly, Vertical Bridge will pay Shentel the USD 310.3 million purchase price on the date of the initial closing. Subsequent closings will occur as closing conditions are met for any remaining sites. The initial closing of the transaction is expected in March 2024.

“The proceeds from the sale of our Tower business will provide Shentel with additional growth capital to support the planned expansion of our Glo Fiber line of business to approximately 600,000 homes and business passings by the end of 2026. With the expected closing of this Transaction and the previously announced USD 356 million of committed financings supporting our pending acquisition of Horizon Telcom, we believe our capital structure is well balanced and will provide future financial flexibility,” Shentel said.