SBA might buy back some 0.375% convertibles using note proceeds

By Angela McDaniels

Tacoma, Wash., July 20 - SBA Communications Corp. plans to use some of the proceeds from an upcoming private offering of notes to repurchase prior to maturity or repay at maturity its outstanding 0.375% senior convertible notes due 2010, according to a company news release.

Subsidiary SBA Telecommunications, Inc. plans to issue $500 million of senior notes in a private offering. Some of the notes will mature in 2016, and some will mature in 2019, and all will be guaranteed on a senior unsecured basis by SBA.

The proceeds will also be used to repay a portion of the principal amount outstanding under subsidiary Optasite Holding Co. Inc.'s credit facility and to repay the 2005 CMBS certificates issued by a subsidiary of SBA Telecommunications.

Concurrently with the closing of the note offering, SBA Telecommunications intends to use cash on hand to repay amounts outstanding under its senior credit facility. It will also repay the remaining amounts outstanding under the Optasite credit facility and terminate the facility.

Boca Raton, Fla.-based SBA owns and operates wireless communications infrastructure.

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