Cell Tower Operator Crown Castle Raises 3Q View

HOUSTON (AP) — Crown Castle International Corp., an operator of cell phone towers, said Tueday it expects to beat its July forecasts for adjusted earnings and site rental revenue in the third quarter.

The Houston-based company didn't offer a new forecast.

But it said it will exceed its July projections for site rental revenue of $385 million to $390 million and adjusted earnings before interest, taxes, depreciation and amortization of $246 million to $251 million.

Crown Castle is scheduled to report earnings on Nov. 3.

Separately, the company also said it plans a public offering of $500 million of senior unsecured notes. Proceeds from the offering will be used for general corporate purposes, including repayment of existing debt of its subsidiaries.

Moody's Investors Service gave the notes a speculative, or junk bond, rating of 'B1' and affirmed the company's junk bond 'Ba2' corporate family rating and probability of default rating.

The ratings agency upgraded Crown Castle's short-term liquidity rating to 'SGL-1' from 'SGL-2' in light of the new debt. The new rating, given to companies considered as speculative investments, means it has very good cash flow and resources.

Shares of Crown Castle fell 61 cents to $33.83 in midday trading.