SBA Announces Pricing of $1.0 Billion of 3.875% Senior Notes Due 2027
January 21 2020 - 5:26PM
Business Wire
SBA Communications Corporation (NASDAQ: SBAC) (“SBA”) announced
today that it has priced an offering of $1.0 billion aggregate
principal amount of senior notes due 2027 (the “Notes”), which was
upsized from the previously announced $750 million. SBA expects the
closing of the Notes to occur on February 4, 2020. The Notes will
have an interest rate of 3.875% and will be issued at a price of
100% of their face value.
Concurrently with the pricing of the notes, SBA delivered a
redemption notice with respect to all $750.0 million of its
outstanding 4.875% Senior Notes due 2022 (the “2022 Notes”). SBA
intends to use the net proceeds of the offering to redeem the 2022
Notes on the redemption date of February 20, 2020, and to repay
amounts outstanding under its Revolving Credit Facility under its
Senior Credit Agreement. All remaining net proceeds will be used
for general corporate purposes.
The Notes will be offered in the United States only to persons
reasonably believed to be qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), and to certain non-U.S. persons in
transactions outside the United States in reliance on Regulation S
under the Securities Act. The Notes have not been registered under
the Securities Act, or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
securities laws of any other jurisdiction. SBA has agreed to file a
registration statement with the Securities and Exchange Commission
pursuant to which SBA will either offer to exchange the Notes for
substantially similar registered notes or register the resale of
the Notes. This press release does not and will not constitute an
offer to sell any of the Notes or the solicitation of an offer to
buy any of the Notes, nor shall there be any sale of the Notes in
any jurisdiction in which such offer, solicitation or sale would be
unlawful. This press release is neither an offer to purchase nor a
solicitation of an offer to sell the 2022 Notes and this press
release shall not constitute a notice of redemption in respect
thereof.
About SBA Communications Corporation
SBA Communications Corporation is a first choice provider and
leading owner and operator of wireless communications
infrastructure in North, Central, and South America and South
Africa. By “Building Better Wireless,” SBA generates revenue from
two primary businesses – site leasing and site development
services. SBA’s primary focus is the leasing of antenna space on
its multi-tenant communication sites to a variety of wireless
service providers under long-term lease contracts.
Information Concerning Forward-Looking Statements
This press release includes forward-looking statements regarding
the offering of the Notes and the intended use of the net proceeds.
These forward-looking statements may be affected by risks and
uncertainties in SBA’s business and market conditions. This
information is qualified in its entirety by cautionary statements
and risk factor disclosure contained in SBA’s SEC filings,
including SBA’s Annual Report on Form 10-K filed with the SEC. SBA
wishes to caution readers that certain important factors may have
affected and could in the future affect SBA’s actual results and
could cause SBA’s actual results for subsequent periods to differ
materially from those expressed in any forward-looking statement
made by or on behalf of SBA, including the risk that the offering
of the Notes cannot be successfully completed. SBA undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20200121006130/en/
Mark DeRussy, CFA Capital Markets 561-226-9531
Lynne Hopkins Corporate Communications 561-226-9431
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