Debt

3 Months Ended

Mar. 31, 2021

10.DEBT

The principal values, fair values, and carrying values of debt consist of the following (in thousands):



		As of						As of
		March 31, 2021						December 31, 2020
	Maturity Date	Principal ‎Balance		Fair Value		Carrying ‎Value		Principal ‎Balance		Fair Value		Carrying ‎Value
Revolving Credit Facility	Apr. 11, 2023	$	590,000	$	590,000	$	590,000	$	380,000	$	380,000	$	380,000
2018 Term Loan	Apr. 11, 2025		2,334,000		2,301,908		2,320,200		2,340,000		2,310,750		2,325,391
2013-2C Tower Securities ⁽¹⁾	Apr. 11, 2023		575,000		590,841		572,370		575,000		599,662		572,063
2014-2C Tower Securities ⁽¹⁾	Oct. 8, 2024		620,000		655,185		616,368		620,000		670,003		616,131
2017-1C Tower Securities ⁽¹⁾	Apr. 11, 2022		760,000		767,532		757,703		760,000		774,410		757,165
2018-1C Tower Securities ⁽¹⁾	Mar. 9, 2023		640,000		660,928		636,481		640,000		671,341		636,045
2019-1C Tower Securities ⁽¹⁾	Jan. 12, 2025		1,165,000		1,192,249		1,155,684		1,165,000		1,218,613		1,155,106
2020-1C Tower Securities ⁽¹⁾	Jan. 9, 2026		750,000		734,505		743,050		750,000		752,910		742,782
2020-2C Tower Securities ⁽¹⁾	Jan. 11, 2028		600,000		571,254		594,215		600,000		597,840		594,081
2016 Senior Notes	Sep. 1, 2024		1,100,000		1,124,871		1,089,616		1,100,000		1,127,500		1,088,924
2017 Senior Notes	Oct. 1, 2022		—		—		—		750,000		757,500		746,642
2020 Senior Notes	Feb. 15, 2027		1,500,000		1,533,975		1,482,131		1,500,000		1,567,500		1,481,466
2021 Senior Notes	Feb. 1, 2029		1,500,000		1,445,625		1,485,939		—		—		—
Total debt		$	12,134,000	$	12,168,873	$	12,043,757	$	11,180,000	$	11,428,029	$	11,095,796
Less: current maturities of long-term debt							(24,000)						(24,000)
Total long-term debt, net of current maturities						$	12,019,757					$	11,071,796

(1)The maturity date represents the anticipated repayment date for each issuance.

The table below reflects cash and non-cash interest expense amounts recognized by debt instrument for the periods presented:



	Interest	For the three months ended March 31,
	Rates as of	2021				2020
	March 31,	Cash		Non-cash		Cash		Non-cash
	2021	Interest		Interest		Interest		Interest


Revolving Credit Facility	1.590%	$	2,148	$	—	$	2,714	$	—
2018 Term Loan ⁽¹⁾	1.872%		10,997		11,434		22,203		2,022
2013-2C Tower Securities	3.722%		5,396		—		5,396		—
2014-2C Tower Securities	3.869%		6,046		—		6,046		—
2015-1C Tower Securities	3.156%		—		—		3,985		—
2016-1C Tower Securities	2.877%		—		—		5,090		—
2017-1C Tower Securities	3.168%		6,085		—		6,085		—
2018-1C Tower Securities	3.448%		5,570		—		5,570		—
2019-1C Tower Securities	2.836%		8,357		—		8,357		—
2020-1C Tower Securities	1.884%		3,598		—		—		—
2020-2C Tower Securities	2.328%		3,540		—		—		—
2014 Senior Notes	4.875%		—		—		3,352		112
2016 Senior Notes	4.875%		13,406		286		13,406		272
2017 Senior Notes	4.000%		2,333		—		7,500		—
2020 Senior Notes	3.875%		14,531		84		6,135		—
2021 Senior Notes	3.125%		8,073		—		—		—
Other			15		—		12		—
Total		$	90,095	$	11,804	$	95,851	$	2,406

(1)The 2018 Term Loan has a blended rate of 1.872%, which includes the impact of the interest rate swap entered into on August 4, 2020, which swapped $1.95 billion of notional value accruing interest at one month LIBOR plus 175 basis points for a fixed rate of 1.874% per annum through the maturity date of the 2018 Term Loan. Excluding the impact of the interest rate swap, the 2018 Term Loan was accruing interest at 1.860% as of March 31, 2021. Refer to Note 17 for more information on the Company’s interest rate swap.

Revolving Credit Facility under the Senior Credit Agreement

During the three months ended March 31, 2021, the Company borrowed $710.0 million and repaid $500.0 million of the outstanding balance under the Revolving Credit Facility. As of March 31, 2021, the balance outstanding under the Revolving Credit Facility was $590.0 million accruing interest at 1.590% per annum. In addition, SBA Senior Finance II LLC, the Company’s wholly owned subsidiary (“SBA Senior Finance II”) was required to pay a commitment fee of 0.20% per annum on the amount of the unused commitment. As of March 31, 2021, SBA Senior Finance II was in compliance with the financial covenants contained in the Senior Credit Agreement.

Subsequent to March 31, 2021, the Company repaid $95.0 million of the outstanding balance under the Revolving Credit Facility. As of the date of this filing, $495.0 million was outstanding under the Revolving Credit Facility.

Term Loan under the Senior Credit Agreement

During the three months ended March 31, 2021, the Company repaid an aggregate of $6.0 million of principal on the 2018 Term Loan. As of March 31, 2021, the 2018 Term Loan had a principal balance of $2.3 billion.

Secured Tower Revenue Securities

As of March 31, 2021, the entities that are borrowers on the mortgage loan (the “Borrowers”) met the debt service coverage ratio required by the mortgage loan agreement and were in compliance with all other covenants as set forth in the agreement. The sole asset of the Trust (defined below) consists of a non-recourse mortgage loan made in favor of the Borrowers.

2021-1C Tower Securities

On April 29, 2021, the Company, through the Trust, priced $1.165 billion of Secured Tower Revenue Securities Series 2021-1C which have an anticipated repayment date of November 9, 2026 and a final maturity date of May 9, 2051 (the “2021-1C Tower Securities”). This transaction is expected to close May 14, 2021. The 2021-1C Tower Securities have a fixed interest rate of 1.631% per annum, payable monthly. In addition, to satisfy certain risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), SBA Guarantor, LLC, a wholly owned subsidiary, will purchase $61.4 million of Secured Tower Revenue Securities Series 2021-1R issued by the Trust. These securities have an anticipated repayment date of November 9, 2026 and a final maturity date of May 9, 2051 (the “2021-1R Tower Securities”). The fixed interest rate on the 2021-1R Tower Securities is 3.625% per annum, payable monthly. Principal and interest payments made on the 2021-1R Tower Securities will eliminate in consolidation.

Net proceeds from this offering will be used to repay the entire aggregate principal amount of the 2017-1C Tower Securities ($760.0 million) and the Secured Tower Revenue Securities, Series 2017-1R ($40.0 million) and for general corporate purposes.

Senior Notes

2021 Senior Notes

On January 29, 2021, the Company issued $1.5 billion of unsecured senior notes due February 1, 2029 at par value (the “2021 Senior Notes”). The 2021 Senior Notes accrue interest at a rate of 3.125% per annum. Interest on the 2021 Senior Notes is due semi-annually on February 1 and August 1 of each year, beginning on August 1, 2021. The Company incurred financing fees of $14.3 million to date in relation to this transaction, which are being amortized through the maturity date. Net proceeds from this offering were used to redeem all of the outstanding principal amount of the 2017 Senior Notes, repay the amounts outstanding under the Revolving Credit Facility, and for general corporate purposes.

The 2021 Senior Notes are subject to redemption in whole or in part on or after February 1, 2024 at the redemption prices set forth in the indenture agreement plus accrued and unpaid interest. Prior to February 1, 2024, the Company may, at its option, redeem up to 35% of the aggregate principal amount of the 2021 Senior Notes originally issued at a redemption price of 103.125% of the principal amount of the 2021 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. The Company may redeem the 2021 Senior Notes during the twelve-month period beginning on the following dates at the following redemption prices: February 1, 2024 at 101.563%, February 1, 2025 at 100.781%, or February 1,

2026 until maturity at 100.000%, of the principal amount of the 2021 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest.

2017 Senior Notes

On February 11, 2021, the Company redeemed the entire $750.0 million balance of the 2017 Senior Notes with proceeds from the 2021 Senior Notes. In addition, the Company paid a $7.5 million call premium and expensed $4.2 million for the write-off of financing fees related to the redemption of the 2017 Senior Notes, which are reflected in loss from extinguishment of debt on the Consolidated Statement of Operations.