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Tailwind-Backed Towerco Shopping Facility for Dividend

Soros Strategic Partners and Vulcan Capital are cashing in on their investments in wireless infrastructure company TowerCo. Morgan Stanley and Jefferies are leading the marketing efforts for a new $240 million credit facility, to be used in part as a dividend payment to Soros Strategic Partners and Vulcan Capital. No word on whether the dividend will reach fellow TowerCo investor Tailwind Capital, which got on board in 2004–when Tailwind was still Thomas Weisel.

According to peHUB sister publication IFR, the facility launched last week with commitments due November 24. Pricing is at Libor plus 400bp to Libor plus 425bp, the publication reported.

Soros Strategic Partners, a fund managed by Soros Fund Management, invested $30 million in Towerco in 2005. The firm also provided an undisclosed chunk of equity to Towerco alongside Vulcan Capital and Stone Tower Equity Partners in 2008 when the company spent $670 million acquiring wireless towers from Sprint Nextel. Towerco has an Ebitda of around $38 million and total leverage of 5.3x.

Tailwind Capital spun out of Thomas Wiesel Partners in 2006. The firm formed Towerco in 2004.