UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
Date of Report August 18, 1999
SBA COMMUNICATIONS CORPORATION
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(Exact name of registrant as specified in its charter)
Florida 333-50219 65-0716501
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(State or other jurisdiction of incorporation or organization) Commission File Number (I.R.S. Employer Identification No.)
One Town Center Road, Boca Raton, Florida 33486
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(Address of principal executive offices) (Zip code)
(561) 995-7670
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(Registrant's telephone number, including area code)
Item 5 Other Events
SBA Communications Corporation announced that it had entered into
definitive agreements (the "Agreements") to acquire 56 wireless
communication towers from Horizon Telcom, Inc. ("Horizon") and to
provide, in specified regions, exclusive site acquisition,
development, collocation, build-to-suit and equipment installation
services, for Horizon Personal Communications and its affiliates
("HPC"), a wholly owned subsidiary of Horizon. HPC is a Sprint PCS
Network Member and under the Horizon PCS name manages Sprint markets
in Ohio, West Virginia and Kentucky.
The Agreements provide that SBA will pay $16.6 million (representing
approximately 16.8 times run rate tower cash flow at acquisition) in
cash for the existing towers which are located in Ohio, Kentucky, and
West Virginia. HPC will lease space on these acquired towers under ten
year leases with initial rent at $1,800 per month, with subsequent
rent escalators and renewal options. Under the services agreement,
SBA, in specified regions, shall have the right to build for SBA's
ownership any new tower required by HPC in its network development.
HPC and SBA estimate that the Agreements will cover the location of as
many as 300 antenna sites by HPC through December 31, 2001, with the
number of such sites being newly-built towers ranging from 100 to 200.
HPC will be the anchor tenant on the towers built and owned by SBA at
monthly rents of either $1,200 or $1,300, with subsequent rent
escalators, for an initial term of 5 years with renewal options. SBA
will provide site acquisition, collocation, and installation
services for HPC equipment under the Agreements. The Agreements also
contemplate the provision of certain services by HPC in exchange for
fees from SBA, and the obligation by HPC under certain circumstances
to lease space on other SBA towers. Territories in which the services
will be provided include West Virginia, Ohio, Tennessee, and,
potentially, certain other markets. The Agreements are subject to due
diligence and other contingencies and are anticipated to be
consummated in the fourth quarter of 1999.
Item 7 Financial Statements and Exhibits
(c) Exhibits
99.1 Press release dated August 17, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
August 18, 1999 /s/ Jeffrey A. Stoops
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Jeffrey A. Stoops
Chief Financial Officer