SBAC · 8-K · 20261102PR443666

Interest Rate and Refinancing Exposure

SBA COMMUNICATIONS CORP · 2026-11-02 · Importance 58 · Surprise 42 · No source text

On July 23, 2026, SBA issued $3.5 billion of senior notes with coupons of 4.875%, 5.150%, and 5.450% and maturities in 2030, 2031, and 2033; the notes’ blended interest rate was 5.113%. Proceeds repaid $1.0 billion under the revolving credit facility and $2.2 billion under the 2024 Term Loan, and the company established a new $2.5 billion revolving facility maturing July 23, 2031. Revolver borrowing rates are based on Term SOFR or the Base Rate and vary with credit ratings; at current ratings, the rate is Term SOFR plus 100 basis points. SBA’s outlook assumes refinancing $1,165 million of tower securities in the fourth quarter at 5.25%, with the actual refinancing date and rate subject to market conditions.

Key facts

• SBA assumes the $1,165.0 million 2021-1C Tower Securities, with an anticipated repayment date of November 9, 2026, will be refinanced in Q4 2026 at 5.25%; the refinancing plan is not finalized and actual timing and rate depend on market conditions. source
• On July 23, 2026, SBA issued $1.35 billion of 4.875% unsecured senior notes due January 15, 2030, $1.35 billion of 5.150% notes due July 15, 2031, and $0.8 billion of 5.450% notes due July 15, 2033. source
• Under the revolving credit facility, SBA may elect Term SOFR plus a 75.0–137.5 basis-point margin or Base Rate plus a 0.0–37.5 basis-point margin, based on its credit ratings. source
• SBA recorded a $20.082 million net loss from extinguishment of debt in Q3 2026, versus none in Q3 2025. source
• Based on SBA’s current credit ratings, revolving credit facility borrowings accrue interest at Term SOFR plus 100.0 basis points and the unused commitment fee is 0.11% per annum. source
• The 2026 Senior Notes have a blended interest rate of 5.113% and weighted average maturity of 4.9 years. source

Impact estimates