US towerco SBA Communications is tapping the bond market via a private offering to raise US$600m to redeem maturing debt.
The Nasdaq-listed company is planning to use the proceeds to buy back its 8.25% notes due 2019 and pay the conversion obligations…
US towerco SBA Communications is tapping the bond market via a private offering to raise US$600m to redeem maturing debt.
The Nasdaq-listed company is planning to use the proceeds to buy back its 8.25% notes due 2019 and pay the conversion obligations on its US$121m of 4% convertible senior notes due 2014.
The remaining proceeds will be used for general corporate purposes. This will manifest in an early unwind of a portion of SBA’s outstanding warrants underlying the 4% notes for cash, and paying part of the principal amount outstanding on its 4% notes in cash upon their conversion.
The Boca Raton, Florida-based towerco last raised debt in February. It secured a senior secured US$1.5bn seven-year term loan to retire existing tranche B term loans, pay down existing balances on its revolver, and part-fund its US$644m acquisition of more than 2,000 towers from Brazilian operator Oi.
SBA operates towers across the Americas. It owns 15,000 towers in the US and its territories, 5,200 in Brazil, and a further 2,000 split between Canada, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama.
