SBA Communications Corp. (SBAC: Quote) has reached a definitive merger agreement with certain affiliates of TowerCo that own 3,252 tower sites in 47 states across the U.S. and Puerto Rico. SBA would pay $1.2 billion in cash and 4.6 million of SBA Class A common shares, implying a total transaction value of $1.45 billion, based on SBA's average three-day closing price of $54.48 as of June 22, 2012.
The cash consideration shall be paid from a combination of cash on hand, existing credit facilities and up to $900 million in financing commitments from J.P. Morgan. The transaction, which may close in the fourth quarter of 2012, is expected to be immediately accretive to AFFO per share.
Pro forma for the closing of the transaction, SBA anticipates that its net debt to annualized adjusted EBITDA ratio would be around 7.8x to 8.0x. SBA expects the TowerCo assets to produce some $93 million - $95 million in tower cash flow for the full calendar year 2013.
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by RTT Staff Writer
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