Vertical Bridge Goes to Town

Townsquare Media announced their 2015 second quarter earnings yesterday, and reported that the company entered into an agreement to sell 43 towers to a subsidiary of Vertical Bridge Holdings for $22.8 million in cash. Following the sale, Townsquare Media will own more than 250 towers. The 43 towers being divested are located on 41 sites in 28 markets and presently house antenna, which broadcast certain Townsquare Media stations, together with third party tenants who pay rent for similar space on such towers. According to the earnings report, for 35 years following the closing, including an initial term of twenty years and three optional five-year renewal periods, Townsquare Media will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. The company has also entered into an agreement with Vertical Bridge who will serve as the exclusive marketing agent for the towers retained by the company.  Alex Gellman, Vertical Bridge Chief Executive Officer commented: “We are excited to be working again with the team at Townsquare Media. With over 250 managed sites and 43 owned towers, this transaction adds over 300 high quality towers in great locations to our growing portfolio of owned and managed towers, including a strong rent roll of third party tenants.”