Central States Tower II secures $75m financing

Continuing a years-long financial relationship, CIT acted as sole lead arranger in the North American telecom tower developer’s largest financing to date.

North American telecom tower developer Central States Tower II (CST II) has secured a financing package of up to $75 million senior secured credit from CIT Bank. 

CIT Communications & Technology Finance served as sole lead arranger and administrative agent in the transaction, according to a release from parent CIT Group. Terms of the transaction were not disclosed, though CIT did reveal that the credit was to be provided by a combination of debt and equity financing. 

“With this new financing in place, we will be able to seamlessly continue to develop and construct new tower sites,” said CST II chief executive Brian Meier. “We are extremely excited to work with CIT and Sweetwater again, both of whom have been valued and trusted partners.”    

Since the 2006 founding of CST II predecessor Central States Tower Holdings (CST Holdings), the company has reportedly constructed more than 500 wireless communication telecom tower sites throughout the United States. 

Not satisfied to exit the industry upon the sale of their previous endeavour to American Tower in 2010, AT&T Mobility veterans Brian Meier and William Wade formed CST II in 2011. 

Between the two separate iterations of CST, the company has now been capitalised by CIT on three separate occasions, with the first being CIT's $20 million loan to CST Holdings announced in January 2008, and the second being the provision of a $35 million senior secured credit facility in November 2013. 

Additional investments include $30 million of equity financing provided by Sweetwater Capital and Merchants Capital Partners in May 2006, a $10 million Viridian Investment Partners equity financing to CST Holdings in 2008, a $25 million credit agreement with Goldman Sachs Specialty Lending Group in April 2010 for CST Holdings, and a $25 million credit agreement with Goldman's special lending group for CST II in August 2012. 

“We have maintained a strong relationship with CST and Sweetwater Capital over the past eight years. CST has a highly experienced management team with a proven track record that operates in an industry sector with very strong and stable fundamentals,” said CIT Communications & Technology Finance group head and managing director Tom Westdyk.