SBA Communications strikes $2B unsecured term loan to refinance tower debt
What's the deal? SBA Communications has entered a $2 billion senior unsecured term loan agreement, with Wells Fargo as administrative agent and CitibankDealroom has a profile for this one. Try Dealroom → as syndication agent. The company drew $1.165 billion at closing on November 6, 2026, with $835 million in delayed-draw commitments available through May 6, 2027.
Why now? The initial proceeds repay SBA's entire $1.165 billion in Secured Tower Revenue Securities, Series 2021-1C. "The Company intends to use the proceeds of the Initial Term Loans to repay the entire aggregate principal amount of the Secured Tower Revenue Securities, Series 2021-1C," SBA said in its filing.
What's the endgame? The deal continues SBA's shift from secured to investment-grade unsecured funding. In July it issued $3.5 billion of notes and replaced its secured credit line with a $2.5 billion unsecured revolver; in September it set up a $2.5 billion commercial-paper program.
SBA owns 46,328 towers across the US, South America, Central America, and Africa, with site leasing generating 97.9% of segment operating profit in 2025. The delayed-draw portion can fund general corporate purposes, including acquisitions and working capital.
Terms: The loans mature on November 6, 2029, and do not amortize. Interest runs at term SOFR plus 0.750% to 1.375%, or a base rate plus up to 0.375%, depending on the company's unsecured debt ratings. A ticking fee of 0.08% to 0.20% applies to unused commitments.
What could go wrong? SBA reported $13 billion of debt and 6.4× net-debt-to-adjusted-EBITDA leverage at Q3, within its 6–7× target. The facility caps consolidated total net leverage at 7.50 to 1.00. The most recent analyst rating is a Hold with a $200.00 price target.
The signal: At $2 billion, the facility sits in the 94th percentile of all US post-IPO debt rounds on record. It signals expanded financing flexibility rather than a new acquisition push, as SBA swaps secured maturities for unsecured debt and management flags more of the same to come.
Read more: tipranks.com
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