Investor appetite for SpectraSite Holding's credit facility more than doubled the amount from $500 million to $1.3 billion. The amended facility was signed this month, adding about 20 banks to the syndicate. A total of 50 banks are in the amended credit, said Steven Lilly, cfo. "We were quite pleased with the strong investor interest," he said. "The agents were very supportive, and the hold levels went down." SpectraSite, based in Cary, N.C., is one of the largest tower operators in the country. The company is also a leading provider of outsourced network services to the wireless communications and broadcast industries in the U.S. and Canada. The original $500 million facility was to finance the acquisition of 2,000 Nextel towers. The additional financing is for the acquisition of 3,900 towers of SBC Communications.
CIBC World Markets and Credit Suisse First Boston lead the deal and were the leads of the original credit. "They have been strong supporters of the company historically," he added. The facility was expanded to make room for additional lead arrangers TD Securities and Bank of Montreal, Lilly said. "We received bids from several interested parties, but we eventually had to make a cut off point," he added. The revolver and term loan "A" expire on June 30, 2007. Term loan "B" expires six months later. Lilly says the company's earnings before interest, taxation, depreciation and amortization was $50.7 million for the last fiscal year.