ATN International (NASDAQ: ATNI) saw its stock jump 15.9% in premarket trading after announcing a major deal to sell its portfolio of 214 towers in the Southwestern U.S. to Everest Infrastructure Partners. The transaction, valued at up to $297 million in cash, marks a significant step in ATN's strategy to streamline operations and unlock the value of its tower assets.

Details of the Transaction

The sale is set to begin closing in the second quarter of 2024. ATN expects to receive initial gross proceeds of approximately $250-$270 million, with an additional $27-$47 million coming over the following 12 months. These subsequent payments will depend on construction and operational milestones.

Brad Martin, ATN's Chief Executive Officer, emphasized the strategic importance of the deal. "Our objective remains clear: to build a stronger, more efficient, and resilient ATN that delivers sustainable, long-term value for our shareholders," he stated. The company plans to use the proceeds to reduce debt, invest in current operations, and pursue select growth opportunities.

Debt Reduction and Financial Allocation

From the initial proceeds, ATN intends to allocate around $70 million to repay borrowings under its CoBank revolving credit facility. Additionally, the company estimates that taxes, payments to minority investors, and transaction expenses will account for roughly 25-30% of the gross proceeds.

Impact on Financial Performance

While the deal strengthens ATN's financial position, it will also impact its revenue and earnings. Upon full completion, the company expects its consolidated and U.S. Telecom segment annual revenue to decrease by $5-$7 million. Operating income is projected to drop by $4-$6 million, while EBITDA could decline by $10-$13 million.

Closing Conditions

The sale is subject to standard closing conditions, including third-party consents and compliance with Hart-Scott-Rodino Act requirements. Despite these conditions, the transaction represents a pivotal move for ATN as it focuses on optimizing its operations and delivering value to shareholders.

This tower sale agreement highlights ATN's commitment to financial discipline and strategic growth, positioning the company for a more resilient future.

To find out more investor relations information please visit www.ir.atni.com.

The post ATN International Stock Soars After $297 Million Tower Sale Agreement appeared first on PRISM MarketView.

COMTEX_473397835/2927/2026-02-12T10:31:14