US towerco SBA Communications is selling US$1.33bn secured tower revenue securities in three tranches.
Together the securities have an average interest rate of 3.218% and a weighted repayment date of 7.2 years. The proceeds will be used to repay…
US towerco SBA Communications is selling US$1.33bn secured tower revenue securities in three tranches.
Together the securities have an average interest rate of 3.218% and a weighted repayment date of 7.2 years. The proceeds will be used to repay debt.
The offering comprises US$425m of series 2013-1C which carries interest of 2.24%. It matures in 2043 but SBA anticipates it will repay the debt in April 2018.
It also includes a US$575m tranche of series 2013-2C securities which have an interest rate of 3.722% and mature in 2048, although SBA expects to repay in April 2023.
The final element is US$330m of series 2013-1D 3.598% securities which SBA expects to repay in April 2018. They have a final maturity date of 2043.
SBA Tower Trust will issue the notes, which the towerco says will be used to repay three specific debt obligations.
It will satisfy any unhedged obligations in relation to the conversion or maturity of its outstanding 1.875% convertible senior notes – estimated to be between US$625m and US$650m –maturing this year, repay the US$100m outstanding under its senior secured revolving credit facility, and pay back balances on term loans outstanding under its senior credit facility.
SBA said the offering is expected to close on 18 April.
Florida-based SBA’s main operations are in the US, but it also owns towers in Brazil, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama. It has a market capitalisation of US$9.2bn.
