BOCA RATON, Fla.-SBA Communications Corp. has received a $195 million credit facility from GE Structured Finance and affiliates of Oak Hill Advisors Inc. to refinance the existing senior credit facility of subsidiary SBA Telecommunications Inc.
SBA owes $255 million under the existing facility and plans to use proceeds from the refinancing, cash on hand and part of the proceeds from the first closing of the previously announced sale of towers to AAT Communications Corp. to repay the facility in full. The new facility will include a $95 million term loan and a $100 million revolving line of credit. “With the new facility, we will have more flexibility to proactively manage our balance sheet and expect to have ample liquidity to allow us to attain sustained positive free cash flow,” said Jeffrey Stoops, president and chief executive officer of SBA.
In other tower news, American Tower Corp. will resell 1.4 million shares of Class A common stock and will resell 808,000 warrants to purchase shares of Class A common stock, according to a filing with the Securities and Exchange Commission. American Tower does not expect to receive any proceeds unless the warrants are fully exercised for cash, in which case those proceeds would be used for general corporate purposes.
Following the news, SBA was trading slightly down at $1.77 per share and American Tower was down about 5 percent to trade at $6.18 per share.
