SBA Communications Announces New $1.5 Billion Financing

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SBA Communications announced that its wholly owned subsidiary, SBA Senior Finance II LLC, has obtained a new delayed draw $1.5 billion, seven-year, senior secured Term Loan B under its existing Senior Credit Agreement. According to the company, “The Term Loan is issued at 99.75% of par value and will mature in March 2021. It bears interest, at the Company’s election, at either the Base Rate plus 1.50% per annum (with a Base Rate floor of 1.75%) or LIBOR plus 2.50% per annum (with a LIBOR floor of 0.75%). The first funding of $750 millionoccurred today, February 7th, and the second funding of $750 million is expected to occur in March, 2014. The Company expects to use the proceeds from the Term Loan to retire existing tranche B term loans, to pay down existing balances on the revolving credit facility, to fund the consideration for the pending Oi acquisition and for general corporate purposes. The Term Loan is secured, on a pari passu basis with the Company’s revolving credit facility and existing tranche A term loan, by a first lien on substantially all of the assets of SBA Senior Finance II and its restricted subsidiaries. The New Term Loan was arranged by Citigroup Global Markets Inc. and Barclays.”

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