Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 29 April 2002

Fortress, Greenhill Recapitalize Troubled Tower Owner

Written by 
Rate this item
(0 votes)
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.


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

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
Read 559 times

Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds