CIT Group Inc. announced that CIT Corporate Finance provided a $35 million senior secured credit facility to Central States Tower II, LLC (CST II), a leading independent operator and developer of wireless communications towers and portfolio company of Sweetwater Capital, LLC and Viridian Investment Partners, L.P.
The transaction allowed CST II to refinance its existing debt and provides additional capital for the construction and development of new towers throughout the U.S. Financing was provided by CIT Bank, the U.S commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“We first financed Central States Tower, the predecessor company to CST II in 2007, and are pleased to further expand our relationship with Central States Tower, Sweetwater Capital and Viridian Investment Partners with this new transaction,” said Roger Fong, Director of CIT Corporate Finance, Communications, Information Services & Technology. “The company has continued to successfully leverage its unique tower development expertise, exceptional operational experience and deep, long-standing relationships with wireless operators in building one of the highest quality tower portfolios.”
Brian Meier, Chief Executive Officer of Central States Tower II, said, “The increase of wireless data and video usage continues to drive demand for towers as a greater number of cell sites, in denser site locations, are needed for handling data traffic. We have a strong relationship with CIT and appreciate their industry expertise and ability to provide the structural flexibility and capital through this transaction, which will enable us to further grow our company.”
William Marraccini, Partner of Sweetwater Capital, said, “The demand for towers is driven by capacity demands on wireless networks. Although subscriber growth continues to increase modestly, the strong growth in mobile data traffic is leading the push. As a valued and trusted partner, this financing from CIT will help support the growth objectives of Central States Tower II and helps position the company for continued success.”