By Rebecca Melvin
New York, April 20 - SBA Communications Corp. priced an upsized $450 million of 5.5-year convertible senior notes after the close of markets Monday to yield 4% with a 22.5% initial conversion premium, according to a syndicate source.
The deal was initially talked to be $350 million in size when it was launched early Monday.
The notes came at the midpoint of talk, which was for a coupon of 3.75% to 4.25% and an initial conversion premium of 20% to 25%.
The Rule 144A convertible offering was sold via joint bookrunners Citigroup, Barclays, Deutsche Bank, JP Morgan and Wachovia. There is a $50 million greenshoe.
The notes are non-callable for life with no puts.
Prior to July 22, 2014, the notes will be convertible only upon specified events. After that date they can be converted at any time. The notes may be settled in cash, shares of SBA Class A common stock, or a combination of both.
In connection with the offering, SBA entered into convertible note hedge and warrant transactions with affiliates of initial purchasers.
The transactions take the effective conversion rate up to 80%, with the warrants struck at 80%.
In addition, the company bought back common stock, funding the private repurchases with $50 million of proceeds.
After the stock repurchase, remaining proceeds will be used to fund the bond hedge and warrant transactions, to repay debt and for general corporate purposes.
Contingent upon pricing of the notes and the hedge transactions, SBA intended to terminate convertible note hedge transactions that it entered into in March 2007 with respect to its 0.375% convertible notes due 2010.
Boca Raton, Fla.-based SBA is an owner and operator of wireless communications infrastructure.
| Issuer: | SBA Communications Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $450 million, upsized from $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | 2014
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 22.5%
|
| Price talk: | 3.75%-4.25%, up 20% to 25%
|
| Call: | Non callable for life
|
| Puts: | No puts
|
| Bookrunners: | Citigroup, Barclays, Deutsche Bank, JP Morgan and Wachovia
|
| Pricing date: | April 20
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: SBAC
|
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