Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

 Note 16. Subsequent Event

On November 14, 2016, we announced that we entered into a definitive agreement to acquire Network Management Holdings LTD (“NMS”).  NMS currently owns and operates 359 towers in Latin America and 114 additional build to suit towers under development. The NMS portfolio spans Mexico, Nicaragua and Colombia.

The initial consideration for the 359 towers currently in operation is expected to be approximately $65 million, subject to changes in the currency exchange rate between the U.S. dollar and both the Mexican peso and Colombian peso.  Under the terms of the purchase agreement, CS&L will acquire the towers under development when construction is completed.  The Company intends to fund the transaction through borrowings under the Revolving Credit Facility. The NMS transaction is subject to regulatory approvals and other customary terms and conditions. Closing is expected to occur in the first quarter of 2017.

On October 21, 2016, we completed the previously announced amendment to our Credit Agreement. Among other things, the amendment (i) repriced our Term Loan Facility, decreasing the interest rate by 50 basis points to LIBOR plus 3.50% per annum with a minimum LIBOR rate of 1.0%, and (ii) modified certain provisions to permit us to operate through a customary “Up-REIT” structure, should we choose to operate through such a structure in the future. Use of such a structure is intended to facilitate future acquisition opportunities by providing us the ability to use operating partnership units as a tax-efficient acquisition currency in certain acquisitions of assets or entities that are structured as limited liability companies or other pass-through entities.  Our interest rate swap agreements are unaffected by this repricing and effectively fix the interest rate on our Term Loan Facility at 5.6%. See Note 6.