SBA Communications Corporation filed an 8-K on November 9, 2026, disclosing that it entered into a $2.0 billion senior unsecured Term Loan Credit Agreement dated November 6, 2026, and drew $1.165 billion in initial term loans to repay its Secured Tower Revenue Securities, Series 2021-1C.

Key Highlights

  • Total facility size: $2.0 billion in senior unsecured term loans, consisting of $1.165 billion in Initial Term Loans and $835.0 million in Delayed Draw Term Loan commitments.
  • Initial draw funded in full: The $1.165 billion Initial Term Loans were funded in a single drawing on the Closing Date of November 6, 2026.
  • Proceeds use: The company disclosed that proceeds of the Initial Term Loans are intended to repay the entire aggregate principal amount of the Secured Tower Revenue Securities, Series 2021-1C ($1.165 billion).
  • Maturity date: The Term Loans mature on November 6, 2029, subject to the company's ability to request lender extensions.
  • Interest rate: Term Loans accrue interest at the company's election at either term SOFR plus a margin of 0.750% to 1.375%, or a base rate plus a margin of 0% to 0.375%, based on ratings from S&P and Fitch.
  • Delayed draw window: The $835.0 million in Delayed Draw Term Loans may be borrowed in up to three drawings through May 6, 2027, after which unfunded commitments terminate automatically.
  • Financial covenants: The agreement requires a Consolidated Total Net Leverage Ratio not to exceed 7.50 to 1.00 and a Consolidated Senior Secured Leverage Ratio not to exceed 3.50 to 1.00 as of the last day of any fiscal quarter.

SBA Communications' $2.0 Billion Term Loan: Structure, Terms, and Debt Repayment

According to the filing, SBA Communications Corporation (NASDAQ:SBAC) entered into a Term Loan Credit Agreement on November 6, 2026, with Wells Fargo Bank, National Association, acting as administrative agent, and Citibank, N.A., as syndication agent. The facility provides for senior unsecured term loans totaling $2.0 billion in aggregate principal. The company disclosed that obligations under the agreement are unsecured and are not guaranteed by any of its subsidiaries.

The filing states that the $1.165 billion in Initial Term Loans was funded in full on the Closing Date, with the company indicating it intends to use those proceeds to repay the entire outstanding principal of its Secured Tower Revenue Securities, Series 2021-1C. The remaining $835.0 million represents delayed draw commitments available in up to three drawings through May 6, 2027. The filing notes that amounts repaid or prepaid may not be reborrowed and that the Term Loans do not amortize. The company may prepay at any time, in whole or in part, without premium or penalty, subject to customary breakage costs, according to the filing. A ticking fee of between 0.08% and 0.20% per annum applies to the average daily unused portion of the delayed draw commitments, based on the company's ratings from S&P and Fitch.

The Term Loan Credit Agreement, as described in the filing, contains customary affirmative and negative covenants limiting, among other things, subsidiary indebtedness, liens, mergers or consolidations, certain restricted payments, affiliate transactions, and certain asset dispositions. The filing also identifies customary events of default including non-payment of debt obligations, material inaccuracy of representations and warranties, bankruptcy or insolvency, and change of control. The company noted that certain lenders and their affiliates have previously provided financial, advisory, investment banking, and other services to the company, including roles in connection with the 2021-1C Tower Securities being repaid.

What Was Disclosed

SBA Communications reported entering a $2.0 billion senior unsecured Term Loan Credit Agreement on November 6, 2026, drawing $1.165 billion immediately to retire its Series 2021-1C Tower Securities, with $835.0 million in delayed draw commitments available through May 6, 2027, and a maturity date of November 6, 2029.