NextEra Energy reaches agreement to sell FiberNet to Crown Castle International Corp. for US$1.5 billion
NextEra Energy has announced it has entered into a definitive agreement to sell FiberNet and its subsidiaries to Crown Castle International Corp. for US$1.5 billion in cash.
A portion of the sale proceeds are expected to be used to retire approximately US$370 million principal amount of FiberNet long-term debt. The impact of the gain on the sale at the time of closing will be excluded from adjusted earnings.
FiberNet is a leading provider of end-to-end bandwidth infrastructure services specializing in fiber-optic network solutions that drive stronger business productivity and performance. Crown Castle is the US's largest provider of shared wireless infrastructure.
The transaction is expected to be accretive to NextEra Energy earnings immediately upon closing. The transaction, which is subject to receipt of regulatory approvals and satisfaction of customary closing conditions, is expected to be completed in the first half of 2017.
UBS Investment Bank is serving as financial advisor to NextEra Energy and Hogan Lovells is serving as legal counsel.
Jim Robo, chairman and chief executive officer of NextEra Energy, said:
"We are pleased to have reached this agreement to sell FiberNet to Crown Castle. FiberNet is a terrific business that has been recognized for its outstanding performance and customer service. Importantly, this transaction is consistent with our strategy of recycling capital to focus on our core businesses and support our overall credit position and strong balance sheet."
"On a more personal level, I want to thank the FiberNet team for all of their hard work and years of service supporting NextEra Energy. I'm extremely proud of what the dedicated group of professionals has accomplished and am confident they will continue to be successful in the years to come."
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