SBAC · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

SBA COMMUNICATIONS CORP · 2026-11-05 · Importance 61 · Surprise 40

SBA states that in a high-interest-rate environment, particularly if rates remain higher for longer, repaying debt—especially variable-rate debt—may be an accretive use of excess capital. For the nine months ended September 30, 2026, interest expense increased $39.2 million, or 11.4%, primarily because a higher average debt principal accrued interest at a higher weighted-average rate. The company repaid its 2024 Term Loan and then-existing revolving credit facility on July 23, 2026, using proceeds from the 2026 Senior Notes issuance.

Key facts

• SBA estimated $1,167.311 million of debt service on its 2021-1C Tower Securities over the 12 months ending September 30, 2027, based on the November 9, 2026 anticipated repayment date; repayment is not required until May 9, 2051. source
• SBA estimated $903.795 million of debt service on its 2021-2C Tower Securities over the 12 months ending September 30, 2027, based on the April 9, 2027 anticipated repayment date; repayment is not required until October 10, 2051. source
• SBA’s 2021-1C Tower Securities had $1,165.0 million outstanding, a 1.631% interest rate, and an anticipated repayment date of November 9, 2026; final maturity is May 9, 2051. source
• SBA’s 2021-2C Tower Securities had $895.0 million outstanding, a 1.840% interest rate, and an anticipated repayment date of April 9, 2027; final maturity is October 10, 2051. source
• SBA recognized a $19.0 million gain on de-designation of interest-rate swaps in Q3 2026 in connection with repayment of the 2024 Term Loan. source
• SBA stated that increased interest rates may adversely affect its costs to refinance indebtedness at maturity. source
• Nine-month 2026 non-cash interest expense decreased $23.3 million year over year, partly due to a $19.0 million gain on de-designation of interest-rate swaps related to repayment of the 2024 Term Loan. 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