Published on 7/10/2012 in the Prospect News High Yield Daily.
New Issue: SBA Telecommunications sells upsized $800 million eight-year notes at par to yield 5¾%
By Paul A. Harris
Portland, Ore., July 10 - SBA Telecommunications, Inc. priced an upsized $800 million issue of eight-year senior notes (B1/B+) at par to yield 5¾% on Tuesday, according to market sources.
The reoffer price and yield came on top of price talk that had tightened from earlier talk of 5¾% to 6%.
J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $650 million.
Proceeds will be used to repay amounts outstanding under the bridge loan under which a subsidiary of SBA borrowed $400 million in connection with the Mobilitie LLC transaction, and to repay a portion of the revolver.
Earlier this year SBA acquired tower sites and distributed antenna system assets from Mobilitie.
SBA is a Boca Raton, Fla.-based provider and leading owner and operator of wireless communications infrastructure.
| Issuer: | SBA Telecommunications, Inc.
|
| Amount: | $800 million, increased from $650 million
|
| Maturity: | July 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC
|
| Co-managers: | Raymond James & Associates, Inc., SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 460 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2016, then callable at 102.875, 101.438, par on and after July 15, 2018
|
| Equity clawback: | 35% at 105.75 until July 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | July 10
|
| Settlement date: | July 13
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5¾% at par, tightened from previous talk of 5¾% to 6%
|
| Marketing: | Quick to market
|
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