Horvath Towers, a cell tower owner and developer, has added equity and debt financing that will help it double its tower portfolio by the end of next year.
Peppertree Capital Management provided an additional $30 million in equity, raising its total equity commitment to $68 million.
Horvath Towers was formed in partnership with Peppertree Capital in 2007 with an initial commitment of $8 million. Peppertree’s commitment grew to $18 million in 2008 and then to $38 million in 2010.
“We have teamed up with a great partner, Peppertree, because they allow us the opportunity to grow at the rate that we desire,” Jackie Horvath, president and CEO of Horvath Towers, told AGL Bulletin. “This new equity infusion is combined with a smaller debt commitment of $20 million.”
Horvath will have 89 new sites by the end of October and has several more under construction to be completed this year. The firm has several projects in the pipeline for next year, as well. Its plan is to double its portfolio by the end of 2014.
“Our business model is simple, our first priority is customer service, so we work with the carriers to determine areas throughout the country where there is a need for a cell tower,” Horvath said. “Because our sole focus is on owning cell towers, we are able to provide superior, focused customer service to our clients.”
Horvath’s growth, thus far, has depended on developing towers from the ground up, as opposed to purchasing towers from carriers.
“We have simply found that there is more advantage to us building and owning our own towers,” Horvath said. “We have control over the due diligence process, which ensures that sites are built to specific standards for future collocation and modifications. This is not to say that we wouldn’t consider purchasing some towers in the future, but it is not our primary focus.”