OREANDA-NEWS. S&P Global Ratings today assigned its 'B' issue-level rating and '6' recovery rating to Boca Raton, Fla.-based wireless tower operator SBA Communications Corp.'s proposed $800 million senior unsecured notes due 2024. The '6' recovery rating indicates our expectation for negligible (0%-10%) recovery of principal in the event of payment default. The company will use proceeds from the transaction, along with cash on hand, to redeem $800 million of its existing 5.75% senior unsecured notes due 2020 at wholly owned subsidiary SBA Telecommunications LLC.

There is no change to our 'BB-' corporate credit rating and stable outlook on SBA since the transaction is leverage neutral and could result in modestly lower interest expenses saving. Adjusted debt to EBITDA was about 8x as of June 30, 2016 and our rating incorporates the expectation that leverage will remain above 7.5x area over the next few years.

For the complete corporate credit rating rationale, please see our research update on SBA, published June 8, 2016.