SBA Communications to buy PG&E transmission tower wireless licenses for $973M

An SBA Communications Corp. unit agreed to purchase Pacific Gas and Electric Co.'s wireless license agreements pertaining to more than 700 transmission towers for $973 million.

Under the agreement, the communications real estate investment trust's unit will be able to sublicense and market equipment at additional attachment locations on up to 28,000 transmission towers across PG&E's network. The PG&E Corp. unit will receive part of future revenues from the sublicensed equipment attachment locations.

The seller expects the proceeds from the sale to further cut its financing needs and bolster its financial position. Its customers are expected to receive a significant portion of the sale proceeds in the form of lower monthly bills and a part of any future revenues from additional attachment locations.

The deal, which is set to be completed in early 2021, does not include the sale of any transmission towers.

PJT Partners was the financial adviser to PG&E, while Munger Tolles & Olson LLP was its legal adviser.