Morning Commentary: Crown Castle adds mandatory deal to calendar; Twitter paper slightly weaker

By Stephanie N. Rotondo

Seattle, July 19 – A new issue was added to the convertibles calendar on Wednesday, as Crown Castle International Corp. announced a $1.5 billion offering of series A mandatory convertible preferred stock.

Price talk on the deal is 7% to 7.5%, with a threshold appreciation range of 15% to 20%.

The deal is being done concurrently with a $3.25 billion equity offering. Proceeds of both deals will be used to finance the company’s acquisition of LTS Group Holdings LLC.

Crown Castle announced the buyout on Tuesday. It will pay $7.1 billion in cash to the owners of Lightower, which includes Berkshire Partners and Pamlico Capital, among others.

On the news, Crown’s equity (NYSE: CCI) fell 86 cents to $95.78.

As for the secondary space, it continued to be on the quiet side.

Twitter Inc.’s 1% convertible notes due 2021 were somewhat active, though there was no fresh news out on the social media company.

The paper was slightly weaker in early dealings, trading around 92.

The company’s stock (NYSE: TWTR) was a touch higher, adding 2 cents to trade at $20.00 at mid-morning

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