SBAC · 10-Q · 2026Q3 · Full report
Interest Expense and Refinancing
SBA COMMUNICATIONS CORP · 2026-11-05 · Importance 56 · Surprise 40 · In source text
Interest expense increased $39.2 million, or 11.4%, for the nine months ended September 30, 2026, primarily because a higher average principal balance accrued interest at a higher weighted-average rate. The rate increase reflected higher blended interest-rate swap rates and the January 9, 2026 repayment of 2020-1C Tower Securities using higher-rate revolving credit borrowings. On July 23, 2026, SBA repaid its then-existing revolving credit facility and 2024 Term Loan with proceeds from 2026 Senior Notes. That repayment generated a $20.1 million loss on debt extinguishment, including write-offs of $16.1 million in unamortized financing fees and $4.0 million in original issuance discount.
Key facts
- For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued Senior Notes for $3,445.873 million net of fees, repaid $2,259.750 million of Term Loans, and repaid $750.0 million of Tower Securities. source
- SBA used net proceeds from its 2026 Senior Notes offering to repay $1.0 billion outstanding on its then-existing revolving credit facility and $2.2 billion on its 2024 Term Loan, and for general corporate purposes. source
- On July 23, 2026, SBA repaid the $2.2 billion principal amount of its 2024 Term Loan using proceeds from the 2026 Senior Notes issuance. source
- On January 9, 2026, SBA repaid $750.0 million of 2020-1C Tower Securities using Revolving Credit Facility borrowings and anticipated refinancing its 2021-1C Tower Securities before maturity. source
- Q3 2026 interest expense increased $6.7 million year over year, primarily due to higher average cash-interest-bearing debt principal and a higher weighted-average rate; the rate increase reflected January 9, 2026 repayment of 2020-1C Tower Securities using revolving-credit borrowings, partly offset by July 23, 2026 repayment of the revolving facility and 2024 Term Loan with proceeds from 2026 Senior Notes. source
- Nine-month 2026 interest expense increased $39.2 million year over year, primarily due to higher average cash-interest-bearing debt and a higher weighted-average rate; contributing factors included swap agreements replacing the prior swap on March 31, 2025, and January 9, 2026 repayment of 2020-1C Tower Securities using revolving-credit borrowings. source
- Q3 2026 loss from extinguishment of debt was $20.1 million, primarily comprising write-offs of $16.1 million in unamortized financing fees and $4.0 million in original issuance discount related to July 2026 repayment of the revolving credit facility and 2024 Term Loan. source
- Nine-month 2026 loss from extinguishment of debt was $20.1 million, primarily comprising write-offs of $16.1 million of unamortized financing fees and $4.0 million of original issuance discount associated with July 2026 repayment of the revolving credit facility and 2024 Term Loan. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +29.7% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| cash | negative | realized | -19.4% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| liability | positive | realized | +19.4% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| cash | negative | realized | -6.5% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| liability | positive | realized | +6.5% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| cash | negative | realized | -4.1% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |
| liability | positive | realized | +4.1% | For the nine months ended September 30, 2026, SBA had net borrowings under the Revolving Credit Facility of $(475.0) million, issued… |