Enters a New Debt Financing Arrangement for US$25,000,000 VANCOUVER, British Columbia, Sept. 29, 2021 (GLOBE NEWSWIRE) -- TOWER ONE WIRELESS CORP. (CSE: TO) (OTCQB: TOWTF) (Frankfurt: 1P3N) (“Tower One” or the “Company”) is pleased to announce that the Company has entered into a long term debt financing arrangement (the “Funding Partnership”) with Ita Corpbanca Colombia S.A. (“Ita”) and a new local partner in Colombia (the “Local Partner”) for an aggregate loan of US$25,000,000 (the “Loan”).
A total of 75% of the Loan will be advanced by Ita and will be secured against the Company’s newly completed towers which are constructed under the Funding Partnership. The Loan from Ita will be advanced in two tranches with interest payable by the Company to Ita every three (3) months at a rate of 4.615% + Indicador Bancario de Referencia (“IBR”) in respect of the first tranche and 4.39% + IBR in respect of the second tranche. The Loan from Ita will have a term of 9.5 years.
A total of 25% of the Loan will be provided by the Local Partner. The amount advanced by the Local Partner will accrued interest thereon at a rate of 6.2% per annum. The Company is required to repay the principal and accrued interest on the amount of the Loan advanced by the Local Partner at the earlier of the Company’s election to acquire the Local Partner’s interest in the Funding Partnership or on the Company’s disposition of the towers constructed under the Funding Partnership.
Alejandro Ochoa, Tower One Wireless Corp CEO says, “This new financing and partnership will allow us to keep on growing in our plan to connect Colombia. The proceeds will be used to continue with the deployment of over 300 towers in the next 12 months. Meanwhile we are devoting our efforts to building a strong backlog for construction, as of today we have more than 400 towers in the pipeline and several alternatives to expand it further.”
About Tower One
Tower One’s principal business is to build, own and operate multi-tenant wireless telecommunications infrastructure (“towers”) in Latin America. Tower One leases space on its towers to mobile network operators. The Company is focused on the build to suit tower industry whereby a long-term lease is secured with a tenant prior to building a tower. The Company owns and operates towers in Latin America (Colombia and Mexico, with a combined population of approximately 160 million people).
https://www.globenewswire.com/news-release/2021/09/29/2305837/0/en/Tower-One-Wireless-Enters-a-New-Debt-Financing-Arrangement-for-US-25-000-000-With-Ita%C3%BA-Corpbanca-Colombia-S-A-and-a-Local-Partner.html