S&P rates SBA revolver BB+

S&P said it gave BB+ issue-level and 2 recovery ratings to SBA Communications Corp.'s new $1.5 billion senior secured revolving credit facility due 2026. The facility replaces the previous $1.25 billion revolving credit facility due 2023. The 2 recovery rating indicates an expectation for modest (70%-90%; rounded estimate: 85%) recovery in default. The revolver will be issued at wholly-owned subsidiary SBA Senior Finance II LLC.

The BB+ issue-level and 2 recovery ratings on the company's senior secured debt, including the $2.4 billion term loan due 2025, are unchanged, S&P said.

“Although the incremental revolver size reduces recovery prospects for secured lenders because we assume the revolver is 85% drawn in our hypothetical default scenario, the lower recovery percentage is not sufficient for us to revise the 2 recovery rating. Similarly, the BB- issue-level and 5 recovery ratings on SBA's senior unsecured debt are unchanged despite the incremental secured debt at default,” S&P said in a press release.

SBA’s BB issuer credit rating and stable outlook are unchanged, the agency said.

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