SBA Communications Corp. (SBAC) said Thursday that an indirect subsidiary of the company has priced an offering of $1.33 billion of Secured Tower Revenue Securities.
The offering includes $425 million of series 2013-1C securities which have an anticipated repayment date of April 2018 and a final maturity date of 2043, $575 million of series 2013-2C securities which have an anticipated repayment date of April 2023 and a final maturity date of 2048, and $330 million of series 2013-1D securities which have an anticipated repayment date of April 2018 and a final maturity date of 2043.
The offered securities will be issued by SBA Tower Trust and will be guaranteed by SBA Guarantor LLC and SBA Holdings LLC.
The offering is expected to close on or about April 18.
Net proceeds from the offering will be used to make a cash distribution to SBA Senior Finance, LLC which will further distribute or contribute such amount to one or more other SBA entities, directly or indirectly, to be used to satisfy any unhedged obligations required to be satisfied in connection with the conversion or maturity of the company's outstanding 1.875% Convertible Senior Notes due 2013, currently estimated to be between $625 million and $650 million, to repay the $100 million outstanding balance under the Company's senior secured revolving credit facility, and to repay certain balances under Term Loans currently outstanding under the company's senior credit facility.
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