BOCA RATON, FL— SBA Communications Corporation (Nasdaq: SBAC) (“SBA”) has announced that an indirect subsidiary of SBA has priced an offering of $700 million of Secured Tower Revenue Securities Series 2016-1 (the “Series 2016-1 Securities”), which have an anticipated repayment date of July 2021 and a final maturity date of July 2046. The Series 2016-1 Securities will be issued by SBA Tower Trust and will be guaranteed by, among others, SBA Guarantor LLC and SBA Holdings LLC.
The Series 2016-1 Securities will bear interest at 2.877% per annum. Net proceeds from this offering will be used to make a cash distribution to SBA Guarantor LLC which will further distribute or contribute such amount to one or more other SBA entities, directly or indirectly, to be used to prepay in full $550 million outstanding of Series 2010-2C Securities, and for general corporate purposes. The offering of the Series 2016-1 Securities is expected to close on or about July 7, 2016.
The Series 2016-1 Securities were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), to institutional investors that qualify as “accredited investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act, and to certain non-“U.S. persons” in “offshore transactions” as defined in, and in reliance on Regulation S under the Securities Act. The offer and sale of the Series 2016-1 Securities have not been and will not be registered under the Securities Act or any state securities laws, 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 state securities laws.
The announcement by SBA Communications Corp. comes on the heels of Vertical Bridge, the largest private owner and manager of wireless communications infrastructure in the U.S., announcing earlier this week it has closed on a $321 million asset-backed securities offering led by Deutsche Bank Securities and Barclays.
News of the funding was well-received on Wall Street. Shares of SBAC gained more than four percent Thursday, $4.36, to close at $107.26.