US towerco SBA Communications has secured a new senior secured US$1.5bn seven-year term loan.
The debt, arranged by Citigroup and Barclays, bears interest at the US base rate plus 1.50% (with a base rate floor of 1.75%) or LIBOR plus 2.50% (with a LIBOR…
US towerco SBA Communications has secured a new senior secured US$1.5bn seven-year term loan.
The debt, arranged by Citigroup and Barclays, bears interest at the US base rate plus 1.50% (with a base rate floor of 1.75%) or LIBOR plus 2.50% (with a LIBOR floor of 0.75%), and priced at 99.75.
SBA will use the proceeds to retire existing tranche B term loans, pay down existing balances on its revolver, and to fund its pending acquisition of more than 2,000 towers from Brazilian operator Oi for US$644m.
The Florida-based towerco is buying the sites through its local unit, SBA Torres Brasil, and has agreed to lease them back to Oi on a long-term basis. The deal is set to close in March.
SBA previously acquired 2,113 towers from Oi in a US$304m transaction that closed at the end of November.
The company owns and operates towers in Brazil, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama and the US, which is its main market.
