EXHIBIT 99.1
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NEWS RELEASE EASTERLY
INVESTOR RELATIONS
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FOR IMMEDIATE RELEASE
Contacts for Crown Castle: Charles C. Green, III, CFO
Crown Castle International
713-570-3000
Ken Dennard /kdennard@easterly.com
Easterly Investor Relations
713-529-6600
Contacts for GE: Marcy Brucellaria
GE Capital
203-961-2281
Ken Koprowski
GE Capital Structured Finance
203-961-5743
GE CAPITAL MAKES STRATEGIC INVESTMENT IN CROWN CASTLE
Companies To Pursue Strategic Alliances within the GE Family
HOUSTON and STAMFORD, CT - SEPTEMBER 15, 1999 - Crown Castle International Corp.
(NASDAQ: TWRS) and GE Capital Structured Finance Group (SFG) announced today
that SFG has agreed to make a $200 million strategic investment in Crown Castle.
The strategic investment is anticipated to be the first step in the development
of additional opportunities for Crown Castle and companies within the GE family
of businesses such as NBC and satellite communications company, GE Americom.
"This substantial investment by GE Capital Structured Finance Group sets
the stage for additional opportunities with other synergistic businesses in the
GE family," said Ted B. Miller, Jr., Crown Castle Chairman and CEO. "Forming
this partnership provides us with additional capital and alternative acquisition
financing for future transactions on a global basis. Equally important, Crown
Castle's status as a major communications infrastructure player has again been
confirmed by a globally recognized strategic investor. GE Capital joins Bell
Atlantic, BellSouth and France Telecom in wireless infrastructure and the BBC
and OnDigital in broadcast infrastructure in supporting Crown Castle.
"This investment and strategic relationship help us to continue the
expansion of our domestic and international communications infrastructure
platforms in a number of significant ways," continued Mr. Miller. "Contemplated
expansion opportunities include acquisition financing, equipment financing and
the ability to offer to the wireless community turnkey capacity in the form of
fully equipped cell sites, expanding the model that has been successful for
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us in the broadcast arena. In addition, we look forward to immediately pursuing
potential communication infrastructure opportunities between our two companies.
We continue to differentiate Crown Castle by providing more value for wireless
and broadcast service providers."
"We are delighted to be making this strategic investment in Crown Castle as
part of our increasing presence in the rapidly growing global tower and wireless
communications industry," said Robert L. Lewis, President of GE Capital
Structured Finance Group. "Crown Castle has a winning combination of attributes
- -- a strong management team, promising business strategy and excellent
fundamentals. We look forward to working with Crown Castle to accomplish mutual
near term and long term strategic goals as voice, video and data continue to
converge in the new world of e-commerce."
"Crown Castle has been experiencing strong growth," said Nicole Cawley,
Managing Director for Global Communications Finance within SFG. "We anticipate
its growth can be furthered by in a number of ways through this new partnership
with SFG and by exploring additional strategic alliances with affiliated GE and
GE Capital companies."
John Eck, President of NBC's Broadcast and Network Operations, added: "We
perceive Crown Castle to be a key player in the consolidation of
telecommunications infrastructure that will ultimately integrate broadcast and
e-business activities. Relationships with companies like Crown will contribute
to NBC's future growth."
At closing of the transaction which is expected by early October, Crown
Castle will receive $200 million of proceeds in exchange for 8 1/4% Convertible
Preferred Stock with a conversion price of $26.88 and warrants to purchase one
million Crown Castle shares at $26.88 per share. The Convertible Preferred
Stock will have a term of 12 1/2 years and the warrants will have a term of five
years. Dividends on the Convertible Preferred Stock will be payable quarterly
in cash and/or common stock. The Convertible Preferred Stock, the warrants and
the shares of common stock issuable upon their conversion or exercise,
respectively, are subject to a prohibition on resale for two years from the date
of closing of the transaction. GE Capital will also have the right to nominate
one Crown Castle director.
The transaction was structured by SFG's Global Communications team in
conjunction with SFG's affiliate, GE Capital Markets Services. Lehman Brothers
advised Crown Castle in this transaction.
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[LOGO OF CROWN CASTLE INTERNATIONAL]
Crown Castle International Corp. is a leading provider of communication sites
and wireless network services and provides an array of related infrastructure
and network support services to the wireless communications and radio and
television broadcasting industries in the United States and United Kingdom. Pro
forma for all closed and previously announced transactions, Crown Castle
International owns, operates and manages over 7,000 wireless communication
towers internationally. For more information on Crown Castle International,
visit: www.crowncastle.com.
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GE Capital Structured Finance Group provides financial solutions for
clients in the global communications, energy, transportation, and commercial and
industrial sectors. A rapidly growing financier in the communications sector,
SFG meets the varied needs of its clients by combining industry and technical
expertise with significant financial capabilities, delivering a full range of
sophisticated financial services and products.
NBC is a global media company with broadly diversified holdings, including
NBC Television Network and thirteen television stations. The Company has
historically been at the forefront of new communications technologies. With its
growing presence in the broadband arena, NBC is committed to exploring
alternative content distribution strategies.
GE Capital, with assets of over US$300 billion, is a global, financial
services company with 28 specialized businesses. It is a wholly owned subsidiary
of General Electric Company, a diversified manufacturing, technology, and
services company with operations worldwide. Its operations include the NBC
television network. GE's website is located at http://www.ge.com.
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This press release contains various forward-looking statements and
information that are based on management's belief as well as assumptions made by
and information currently available to management. Although the Company
believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Such statements are subject to certain risks, uncertainties and
assumptions. Should one or more of these risks materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those expected.
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