SBA Communications sets pricing in tender offers for 9¾% discount notes, 8½% notes

By Jennifer Chiou

New York, April 5 - SBA Communications Corp. said it set pricing in tender offers for its $221.5 million principal amount at maturity of 9¾% senior discount notes due 2011 and $162.5 million of 8½% senior notes due 2012.

For each $1,000 in principal amount at maturity of 9¾% notes, SBA said it will pay $961.46, which is based on $1,048.75 - the present value of the notes on their first call date, Dec. 15, 2007 - discounted using the 4¼% Treasury note due Nov. 30, 2007 and 50 basis points.

For each $1,000 in principal amount of 8½% notes, the company said it will pay $1,114.30, which is based on $1,042.50 - the present value of the notes on their first call date, Dec. 1, 2008 - discounted using the 3 3/8% Treasury note due Dec. 15, 2008 and 50 bps.

The payouts include a consent payment of $30.00 for each $1,000 principal amount at maturity or principal amount for those who tendered their securities before the consent deadline at 5 p.m. ET on March 31.

Pricing was determined at 2 p.m. ET on April 5.

The company added that holders of the 8½% notes will also receive $33.06 for accrued interest up to but excluding the payment date.

The offer expires at midnight ET on April 20, previously extended from April 17.

The offers are being carried out as part of the company's acquisition of AAT Communications Corp.

As of noon ET on March 31, holders of 96.7% of the 9¾% discount notes and 96% of the 8½% notes had tendered and submitted consents to the proposed amendments to the indentures governing the notes, which eliminate all restrictive covenants and certain events of default.

Deutsche Bank Securities Inc. (call collect 212 250-5655) and J.P. Morgan Securities Inc. (866 834-4666) are the joint dealer managers and solicitation agents. D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 431-9645).

The offers are conditioned upon the completed acquisition of AAT, required financing and the receipt of tenders from holders of a majority of the notes.

The Boca Raton, Fla., owner and operator of wireless communications towers said it plans to use a portion of the proceeds of a $1.1 billion bridge financing commitment to fund the offers.

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