SBA Communications To Buy 2007 Sites From Oi SA - Quick Facts

(RTTNews) - SBA Communications Corp. (SBAC) Wednesday said it entered into a definitive agreement with certain subsidiaries of Oi SA, Brazil-based telecommunications service providers, and its affiliates, to acquire 2,007 sites for about 1.525 billion Brazilian Real or $645 million. Upon closing, the deal is expected to be immediately accretive to SBA's AFFO per share

Upon the deal closure, Oi will enter into a long-term lease with SBA, with monthly lease payments, for antenna space on each of these sites. As of now, the sites have 1.6 tenants per site, and include leases with all of the major wireless carriers in Brazil.

SBA will fund the consideration with cash on hand, existing revolver capacity and/or future debt issuances. The transcation is expected to close on or before March 31, 2014.

SBA expects the sites to add about R$110 million of cash leasing revenue and R$70 million of tower cash flow to its 2014 results. Upon consummating this transaction, SBA will own or have use rights with respect to over 5,000 sites in Brazil. This deal follows SBA's previously announced acquisition of use rights to 2,113 sites from Oi, which closed in November.