Cell Site Lease Buyouts • Cell Tower Lease Buyouts • Cell Site Lease Prepayments • Cell Tower Lease Prepayments • Cell Tower Lease Purchases • Cash for Your Cell Site Lease • Cash for Cell Towers
Public Sector Deals:
Working With State and Local Governments to Solve Budget Problems
The current recession has created severe budget problems for many state and local governments nationwide. Government workers are at risk of being furloughed or laid off, and in some instances essential public services are being curtailed.
Wireless Infrastructure Partners (WIP) works with governments across the United States to help address budgetary shortfalls. We do so by assisting governments with privatizing their "non-core" assets. Specifically, WIP helps State agencies and municipalities turn their wireless telecommunications ("cell") site leases into cash.
What leases are you referring to? During the last 10-15 years, States and municipalities have leased both rooftop space and land to wireless carriers. The carriers have placed antennas on these cell sites, and usually pay monthly rent for the use of the site.
What, specifically, is WIP offering relative to these cell sites? WIP is offering to pay a significant, up-front lump sum for the right to receive future cell site rent for a fixed period of time (typically 15-30 years). Subject to "due diligence" standards, WIP will provide this payment relative to leases with most major wireless carriers and tower companies. We do not limit our interest to only a few of the very largest carriers and tower companies, and therefore provide State and local governments with an expansive opportunity to "monetize" site leases. This can result in a substantially higher up-front cash payment than would otherwise be available. Carriers and tower companies typically have the right to terminate cell site leases with 30-90 days' notice, so in making this payment termination risk is assumed by WIP.
If our leases can be terminated, why does WIP want to buy them? The price offered by WIP for future rent is discounted to take into account the potential risk of site termination. In addition, WIP seeks to compile a diversified portfolio of leases to mitigate the impact of future site terminations.
What are WIP's terms? Assuming a government cell site meets WIP's due diligence criteria, the up-front lump sum payment to the government is unconditional and unrestricted. Future site rent will be assigned for a limited, agreed-upon, fixed period of time. At the end of the lease prepayment period, the government can seek another lease prepayment or, alternatively, begin receiving periodic rent as it has in the past.
Can you summarize the benefits? Yes. By providing State and local governments with an opportunity to privatize cell site leases, a significant amount of cash can be raised immediately. In addition, the government would effectively mitigate any risk of future site termination.
Contact Us
If you would like to learn more about our public sector offerings, then e-mail us, contact us on-line, or call us, toll-free, at (888) 880-4699.
Private Sector Deals:
WIP Pays Cash and Executes Quickly and Reliably
Over 5,000 landlords across the United States have converted their cell site leases in to cash through a so-called "lease buyout" or "lease prepayment." Why follow their lead? There are several good reasons:
1. Raise cash in uncertain times. Lease prepayments remain a source of cash to cell site landlords even as other sources of cash and credit disappear in today's troubled financial environment. Subject to customary "due diligence", WIP will pay cash for leases with most major wireless carriers. We do not limit our interest to only a few of the largest carriers and therefore provide landlords with greater opportunities to monetize site leases.
2. Eliminate the risk of lease termination. More than 90% of all U.S. site leases allow the wireless carrier or tower company to cancel with 30-90 days' notice. While we have no reason to believe that your particular site is at risk, you can eliminate any risk that might exist through a lease prepayment with WIP.
3. Pay down debt. A lease prepayment from WIP allows you to accelerate and "lock in" a portion of your future site rent so that you can assuredly meet your recurring financial obligations like credit card debt, mortgages, student and auto loans, etc. In some cases it is indeed true that a "bird in the hand is worth two in the bush!"
4. Eliminate the risk of rent reductions. Wireless carriers and tower companies have a strong interest in controlling the growth of their operating expenses. Site rent is a significant operating expense for these companies and it tends to increase over time due to the impact of rent "escalators." You may have already been approached about reducing your site rent in exchange for a guaranteed lease term or some other consideration. A lease prepayment with WIP may be a preferable way for you to maximize the value of your site lease while protecting against the risk of site termination.
5. Continue to participate in future rent. If you need som extra cash during this economic downturn, but you still wish to receive future site rent, WIP offers shorter-term prepayments and other alternatives that may meet your needs. We do not seek perpetual deals and we take pride in our willingness and ability to be flexible and creative. We welcome an opportunity to "customize" a transaction that will satisfy your requirements.