SBA Communications plans $500 million financing for acquisition

By Sara Rosenberg

New York, Feb. 21 - SBA Communications Corp. has received a $500 million financing commitment to help fund its purchase of certain entities from Mobilitie LLC owning in excess of 2,300 tower sites and indoor and outdoor distributed antenna systems, according to a news release.

Barclays Bank plc and J.P. Morgan provided the commitment.

Other funds for the transaction will come from cash on hand and borrowings under existing credit facilities.

Under the agreement, SBA is buying the assets for $850 million in cash and 5.25 million shares of class A common stock, implying a total transaction value of $1.093 billion.

Closing is expected in the second quarter, subject to customary conditions.

Pro forma for the closing of the transaction, SBA expects that its second quarter-end net debt to annualized adjusted EBITDA ratio will be around 7.7 times to 7.8 times.

SBA is a Boca Raton, Fla.-based provider, owner and operator of wireless communications infrastructure.

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