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Monday, 29 April 2002

Fortress, Greenhill Recapitalize Troubled Tower Owner

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April 30, 2002

SARASOTA, Fla. – Fortress Investment Group and Greenhill Capital Partners LLP have agreed to acquire Pinnacle Holdings Inc. through an equity infusion of up to $205 million, allowing the troubled operator of wireless communications towers to recapitalize.

The recapitalization will take place through a pre-negotiated bankruptcy plan, which will likely be filed next month.

Besides the $205 million equity investment by merchant bank Greenhill and Fortress, an opportunistic investment firm, a group of lenders led by Deutsche Bank Securities and Bank of America will provide a $340 million credit facility.

As a result of the recapitalization, Wesley R. Edens will be named chairman of Pinnacle, while Robert H. Niehaus, chairman of Greenhill, will be named vice chairman. Fortress is headed by Edens and Robert I. Kauffman, former executives with UBS and BlackRock Financial.

If a deal isn't completed, Pinnacle would pay a $12 million termination fee to Greenhill and Fortress.

Meanwhile, Pinnacle's senior notes will be exchanged for a combination of cash and 49 percent of the resulting company's common stock. The same will happen to the company's convertible subordinate notes due 2007.

Former shareholders will receive five-year warrants to buy up to 102,500 shares in the new company. That amount could be doubled under certain circumstances.

Pinnacle has rights to more than 4,000 communications towers. It leases space on them to wireless communications companies.


Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mergers & Acquisitions (M&A), Mortgages/Financing (MOR)
  • Company: Franchise Finance Corp. of America
  • Valuation: More than $150 million
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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