SBA to price $300 million three-year convertibles, talked at 0.125%-0.625%, up 17.5%-22.5%

By Kenneth Lim

Boston, March 20 - SBA Communications Corp. planned to price $300 million of three-year convertible senior notes on Tuesday after the market closed, talked at a coupon of 0.125% to 0.625% and an initial conversion premium of 17.5% to 22.5%.

The notes were offered at par.

There is an over-allotment option for a further $50 million.

Lehman Brothers, Citigroup and Deutsche Bank are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable and may not be put.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles will have dividend and takeover protection.

There is a net-share settlement feature.

SBA, a Boca Raton, Fla.-based owner of wireless communications towers, said the proceeds of the deal will be used to fund convertible note hedge and warrant transactions, to concurrently buy back $125 million of its common stock and for other general purposes.

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