SBA buying more Brazilian sites from Oi for $527M

Continuing the tower industry's massive acquisition spree, SBA (SBAC +1.1%) is buying another 1,641 sites from Brazilian carrier Oi (OIBR +1.4%) for R$1.17B ($527M).

The deal will be funded with both existing cash and a revolver facility, and is expected to close by year's end. The sites are expected to contribute R$125.7M in cash leasing revenue and R$74.2M in tower cash flow in 2015.

In March, SBA closed a deal to buy 2,007 sites from Oi for $645M, and last November, it bought use rights for 2,113 sites from the carrier for $321M.

Last week, rival American Tower announced it's buying 2,530 Brazilian towers, along with use rights for another 2,110, for $978M. In 2013, In 2013, AMT bought NII Holding's Brazilian sites for $811M.

SBA had $6.5B in net debt at the end of Q1. It recently announced it's selling another $750M in debt, partly to refinance.

Oi has been hungry to pare its massive debt load ($13.7B in net debt at the end of Q1) ahead of its merger with Portugal Telecom (PT +2.7%).  The company launched a major stock offering in April.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs