By Ronda Fears
Memphis, March 21 - SBA Communications Corp. priced $350 million of 3.75-year convertible senior notes at the mid-range of talk on Tuesday after the market closed at par with a coupon of 0.375% and an initial exchange premium of 19%.
The total amount includes a fully exercised over-allotment option for $50 million.
Lehman Brothers, Citigroup and Deutsche Bank are bookrunners of the Rule 144A offering.
The notes are non-callable and may not be put.
There is a contingent conversion trigger at 130%.
The notes have dividend and takeover protection.
There is a net-share settlement feature.
SBA, a Boca Raton, Fla.-based owner of wireless communications towers, said $49.9 million of the proceeds will be used to fund convertible note hedge and warrant transactions and $91.2 million of the proceeds will be used to concurrently buy back 3.24 million common shares. Remaining proceeds will be used for other general purposes, including the purchase of towers, construction of towers, and/or the lease of land to place towers.
| Issuer: | SBA Communications Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Lehman Brothers, Citigroup and Deutsche Bank
|
| Amount: | $350 million (including $50 million greenshoe)
|
| Greenshoe: | $50 million (fully exercised)
|
| Maturity: | Dec. 1, 2010
|
| Coupon: | 0.375%
|
| Price: | Par
|
| Yield: | 0.375%
|
| Conversion premium: | 19%
|
| Conversion price: | $33.56
|
| Conversion ratio: | 29.7992
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Cash settlement: | Yes
|
| Call protection: | Non-callable
|
| Puts: | No
|
| Price talk: | 0.125%-0.625%, up 17.5%-22.5%
|
| Pricing date: | March 20, after the close
|
| Settlement date: | March 26
|
| Distribution: | Rule 144A
|
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