Davis Polk is advising Communications Sales & Leasing, Inc. on its acquisition of PEG Bandwidth, LLC from affiliates of Associated Partners, L.P. and certain other sellers. The purchase price for all outstanding equity interests of PEG Bandwidth is valued at $409 million, subject to adjustment, and will include $315 million of cash, issuance of one million shares of CS&L’s common stock and the issuance of 87,500 shares of CS&L’s newly created 3% Series A Convertible Preferred Stock. The transaction, which is expected to close in April 2016, is subject to regulatory approvals and other customary terms and conditions.

CS&L is a NASDAQ listed, internally managed real estate investment trust engaged in the acquisition and construction of mission critical infrastructure in the communications industry. PEG is a leading provider of infrastructure solutions, including cell site backhaul and dark fiber for telecom carriers and enterprises. Associated Partners is a telecom industry investment vehicle, whose strategy is to invest in and operate wireless communications infrastructure companies.

The combined Davis Polk mergers and acquisitions and capital markets team includes partners Michael Kaplan, H. Oliver Smith and Mark M. Mendez and associates Jesse Kramer, Mark J. DiFiore and Nicholas C. Phillips. Partner Jeffrey P. Crandall and associate Florentino Salazar are providing executive compensation advice. Partner Michael Mollerus and associate Patrick E. Sigmon are providing tax advice. All members of the Davis Polk team are based in the New York office.

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