Deutsche Bank and Bank of America will launch a $340 million exit financing for Pinnacle Towers on Wednesday in the wake of the company's rapid emergence from Chapter 11 bankruptcy protection. The loan is divided into a $300 million amortizing "B" loan priced at LIBOR plus 4% and a $40 million revolver priced at LIBOR plus 31/ 2%. Officials at the company and the banks either did not return calls or declined to comment.
Pinnacle filed for Chapter 11 in May with the aim of de-leveraging its balance sheet by allowing senior bondholders to become equity holders in the company. The company's senior notes will be cancelled in exchange for $114 million in cash and up to 49% of the stock of the newly reorganized company. The majority equity stake will go to Fortress Investment Group and Greenhill Capital Partners, which are investing $205 million in the wireless communication tower company as part of the pre-negotiated plan.