SBA Communications establishes $2.5 billion commercial paper program

SBA Communications Corp. (SBAC) established a commercial paper program on Thursday, according to a regulatory filing.

The program allows the company to issue short-term, unsecured, commercial paper notes in an aggregate principal amount of up to $2.5 billion outstanding at any one time.

The company said in the filing that amounts available under the program may be borrowed, repaid, and reborrowed.

Notes issued under the program will have maturities not exceeding 397 days from the date of issue and will be sold on customary terms in the U.S. commercial paper market on a private placement basis.

The proceeds from the notes will be used for general corporate purposes, according to the filing.

The notes will rank pari passu with other unsecured and unsubordinated indebtedness of the company.

They will effectively rank junior to all secured indebtedness of the company to the extent of the value of the assets securing that debt.

The notes will also be structurally subordinated to all indebtedness and other liabilities of the company subsidiaries, including secured tower revenue notes and other debt outstanding at the subsidiary level.

One or more commercial paper dealers will act as dealers under the program pursuant to dealer agreements entered into with the company.

A national bank will act as the issuing and paying agent under the program.