SBA expands Brazil operations by acquiring 1,641 additional wireless sites

SBA Communications announced that it has entered into a definitive agreement with certain subsidiaries of Oi SA and its affiliates, under which SBA will acquire 1,641 wireless sites in Brazil. Upon closing of the transaction, Oi will enter into a long-term lease with SBA, with monthly lease payments, for antenna space on each of these sites. The sites currently have 1.4 tenants per site and include leases with all of the major wireless carriers in Brazil. The transaction, subject to customary closing conditions, is expected to close by year end 2014. This transaction was exclusively negotiated and is on terms and conditions similar to SBA's acquisition of 2,007 sites from Oi, which transaction closed March 31. The consideration to be paid by SBA for the 1,641 sites will be approximately $527M. SBA expects to fund the purchase price from cash on hand and existing revolver capacity. SBA anticipates that the sites will contribute approximately R$125.7M of cash leasing revenue and R$74.2M of tower cash flow to SBA's results for full year 2015. SBA anticipates that the transaction, upon closing, will be immediately accretive to AFFO per share. Upon consummating this transaction, SBA will own or have use rights with respect to approximately 7K sites in Brazil.