Sept 14 - Standard & Poor's Ratings Services said today that it assigned its
'BB' issue-level rating and '1' recovery rating to SBA Senior Finance II LLC's
proposed $300 million term loan, a new tranche to be added to the company's
existing $495 million term loan B. The company will use the proceeds to partly
fund the cash portion of the pending TowerCo acquisition, which we expect to be
completed before the end of 2012. There is no change in the existing ratings on
parent SBA Communications Corp. and its related entities, including its 'B+'
corporate credit rating and the 'BB' issue-level rating and '1' recovery rating
on the existing secured credit facilities at SBA Senior Finance II LLC, and the
'B+' issue-level rating and '4' recovery rating on senior unsecured debt at
intermediate holding company SBA Telecommunications Inc.
With the issuance of the new bank loan tranche, we have also revised the
liquidity assessment on the company to "adequate" from "less than adequate."
Although we expect sources of liquidity prior to close of the TowerCo
transaction to be lower than the minimum 1.2x coverage of uses necessary to
support an adequate liquidity assessment, with the completion of the
acquisition, we expect sources of liquidity to exceed this 1.2x minimum.
RELATED CRITERIA AND RESEARCH
-- Methodology And Assumptions: Liquidity Descriptors For Global
Corporate Issuers, Sept. 28, 2011
-- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
-- Business Risk/Financial Risk Matrix Expanded, May 27, 2009
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
SBA Communications Corp.
Corporate Credit Rating B+/Stable/--
SBA Senior Finance II LLC
Proposed $300 mil term loan B BB
Recovery Rating 1