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 (Date of earliest event reported) July 14, 2020
SBA Communications Corporation
(Exact Name of Registrant as Specified in its Charter)
Florida |
001-16853 |
65-0716501 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
8051 Congress Avenue Boca Raton, FL |
33487 |
|
(Address of Principal Executive Offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (561) 995-7670
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Class A Common Stock, $0.01 par value per share |
SBAC |
The NASDAQ Stock Market LLC (NASDAQ Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 |
Entry into a Material Definitive Agreement. |
Issuance of 2020 Tower Securities
On July 14, 2020, pursuant to the terms of a Purchase Agreement (the “Purchase Agreement”) among SBA Senior Finance, LLC, an indirect subsidiary of SBA Communications Corporation (the “Company”), Deutsche Bank Trust Company Americas, as trustee (the “Trustee”), and Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, as representatives of the several initial purchasers named on Schedule I thereto (the “Initial Purchasers”), SBA Tower Trust (the “Trust”), a New York common law trust established by SBA Depositor LLC, an indirect subsidiary of the Company (“SBA Depositor”), issued, and the Initial Purchasers purchased, $1.35 billion aggregate principal amount of Secured Tower Revenue Securities, consisting of $750 million principal amount of Secured Tower Revenue Securities, Series 2020-1C (the “2020-1C Tower Securities”) and $600 million of Secured Tower Revenue Securities, Series 2020-2C (the “2020-2C Tower Securities”, and together with the 2020-1C Tower Securities, the “2020 Tower Securities”).
The 2020-1C Tower Securities have an anticipated repayment date in January 2026, a final maturity date in July 2050 and an interest rate of 1.884% per annum. The 2020-2C Tower Securities have an anticipated repayment date in January 2028, a final maturity date in July 2052 and an interest rate of 2.328% per annum.
The net proceeds from the offering were approximately $1.34 billion, after deducting initial purchasers’ discounts and expenses. Net proceeds from the offering were used to (1) repay $500 million principal amount, of the Secured Tower Revenue Securities, Series 2015-1C (the “2015-1C Tower Securities”), (2) repay $700 million principal amount of the Secured Tower Revenue Securities, Series 2016-1C (the “2016-1C Tower Securities”), and (3) make a cash distribution to SBA Guarantor LLC, an affiliate of SBA Depositor (“SBA Guarantor”), which will further distribute such amount to one or more other Company entities to be used for general corporate purposes.
To satisfy the applicable risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Risk Retention Rules”), the Trust issued, and SBA Guarantor purchased, $71.1 million principal amount of Secured Tower Revenue Securities, Series 2020-2R (the “2020-2R Tower Securities”) in order to retain an “eligible horizontal residual interest” (as defined in the Risk Retention Rules) in an amount equal to at least 5% of the fair value of the offered and retained securities. The 2020-2R Tower Securities have an anticipated repayment date in January 2028, a final maturity date in July 2052 and an interest rate of 4.336% per annum.
Sixth Loan and Security Agreement Supplement
In connection with the issuance of the 2020 Tower Securities, SBA Properties, LLC, SBA Sites, LLC, SBA Structures, LLC, SBA Infrastructure, LLC, SBA Monarch Towers III, LLC, SBA 2012 TC Assets PR, LLC, SBA 2012 TC Assets, LLC, SBA Towers IV, LLC, SBA Monarch Towers I, LLC, SBA Towers USVI, Inc., SBA GC Towers, LLC, SBA Towers VII, LLC, SBA Towers V, LLC, and SBA Towers VI, LLC (the “Borrowers”) and Midland Loan Services, a Division of PNC Bank, National Association, as servicer on behalf of the Trustee, entered into a Sixth Loan and Security Agreement Supplement, dated July 14, 2020 (the “Sixth Loan Supplement”), which supplemented and amended the Second Amended and Restated Loan and Security Agreement, dated October 15, 2014.
Pursuant to the Sixth Loan Supplement, among other things, (1) the outstanding principal amount of the mortgage loan (the “Mortgage Loan”) was increased by $1.42 billion (or by a net of $221.1 million after giving effect to the prepayment of the 2015-1C Tower Securities and the 2016-1C Tower Securities) and (2) the Borrowers became jointly and severally liable for the aggregate $5.3 billion borrowed under the Mortgage Loan corresponding to the 2013-2C Tower Securities, 2014-2C Tower Securities, 2017-1C Tower Securities, 2017-1R Tower Securities, 2018-1C Tower Securities, 2018-1R Tower Securities, 2019-1C Tower Securities, 2019-1R Tower Securities and the newly issued 2020-1C Tower Securities, 2020-2C Tower Securities and 2020-2R Tower Securities (together the “Tower Securities”).
The Mortgage Loan is the sole asset of the Trust. The aggregate principal amount of the loan components outstanding under the Mortgage Loan is $5.3 billion, comprised of (1) the $575 million loan component with the
same terms and conditions as the 2013-2C Tower Securities, (2) the $620 million loan component with the same terms and conditions as the 2014-2C Tower Securities, (3) the $760 million loan component with the same terms and conditions as the 2017-1C Tower Securities, (4) the $40 million loan component with the same terms and conditions as the 2017-1R Tower Securities, (5) the $640 million loan component with the same terms and conditions as the 2018-1C Tower Securities, (6) the $33.7 million loan component with the same terms and conditions as the 2018-1R Tower Securities, (7) the $1.165 billion loan component with the same terms and conditions as the 2019-1C Tower Securities, (8) the $61.4 million loan component with same terms and conditions as the 2019-1R Tower Securities, (9) the $750 million loan component with the same terms and conditions as the 2020-1C Tower Securities, (10) the $600 million loan component with the same terms and conditions as the 2020-2C Tower Securities and (11) the $71.1 million loan component with the same terms and conditions as the 2020-2R Tower Securities.
The Mortgage Loan underlying the Tower Securities is to be repaid from the operating cash flows from the aggregate 10,000 tower sites owned by the Borrowers, as of the closing date. The Mortgage Loan is secured by (1) mortgages, deeds of trust and deeds to secure debt on a substantial portion of the tower sites, (2) a security interest in the towers and substantially all of the Borrowers’ personal property and fixtures, (3) the Borrowers’ rights under tenant leases, and (4) all of the proceeds of the foregoing. For each calendar month, SBA Network Management, Inc., an indirect subsidiary of the Company, is entitled to receive a management fee for its services as manager equal to 4.5% of the Borrowers’ operating revenues for the immediately preceding calendar month.
The Borrowers may prepay the $1.35 billion loan corresponding to the 2020 Tower Securities with no prepayment consideration (1) within twelve months of the anticipated repayment date in the case of the $750 million loan corresponding to the 2020-1C Tower Securities and within eighteen months of the anticipated repayment date in the case of the $600 million loan corresponding to the 2020-2C Tower Securities, (2) with proceeds received as a result of any condemnation or casualty of any tower owned by the Borrowers or (3) during an amortization period. In all other circumstances, the Borrowers may prepay the $1.35 billion loan, in whole or in part, upon payment of the applicable prepayment consideration. The prepayment consideration consists of an amount equal to the excess, if any, of (i) the present value associated with the portion of the principal balance of the $1.35 billion loan being prepaid, calculated in accordance with the formula set forth in the Sixth Loan Supplement, on the date of prepayment of all future installments of principal and interest required to be paid from the date of prepayment to and including the first due date within (a) twelve months of the anticipated repayment date of the 2020-1C Tower Securities and (b) eighteen months of the anticipated repayment date of the 2020-2C Tower Securities, as applicable, over (ii) that portion of the principal balance prepaid on the date of such prepayment.
To the extent that the loans corresponding to the 2020 Tower Securities are not fully repaid by the applicable anticipated repayment date, the applicable interest rate will increase by the greater of (i) 5% and (ii) the amount, if any, by which the sum of (x) the ten-year U.S. treasury rate plus (y) the credit-based spread for such component (as set forth in the Sixth Loan Supplement) plus (z) 5%, exceeds such interest rate. Except as set forth herein, all other material terms and conditions of the Mortgage Loan remain unchanged.
Relationships
The Company and certain of its affiliates have previously entered into commercial financial arrangements with each of the Initial Purchasers, and/or their respective affiliates, and each of these entities and/or its affiliates has in the past provided financial, advisory, investment banking and other services to the Company and its affiliates, including serving (1) as a lender and/or in other related capacities in connection with the Senior Credit Agreement and the various term loans and revolving credit facility under the Senior Credit Agreement, (2) as a book runner and/or as an initial purchaser for our various series of Secured Tower Revenue Securities and (3) as a book runner and/or an initial purchaser for our various series of Senior Notes. Certain of the Initial Purchasers or their affiliates may hold from time to time a portion of the 2015-1C Tower Securities and/or the 2016-1C Tower Securities and, accordingly, may receive a portion of the net proceeds of the offering.
Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 is incorporated by reference herein.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit No. |
Description |
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10.12F |
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104 |
Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document). |
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 hereunto duly authorized.
SBA COMMUNICATIONS CORPORATION |
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By: |
/s/ Brendan T. Cavanagh |
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Brendan T. Cavanagh | ||
Executive Vice President and Chief Financial Officer |
Date: July 20, 2020
Exhibit 10.12F
EXECUTION VERSION
SIXTH
LOAN AND SECURITY AGREEMENT SUPPLEMENT
among
SBA PROPERTIES, LLC,
SBA SITES, LLC,
SBA STRUCTURES, LLC,
SBA INFRASTRUCTURE, LLC,
SBA MONARCH TOWERS III, LLC,
SBA 2012 TC ASSETS PR, LLC,
SBA 2012 TC ASSETS, LLC,
SBA TOWERS IV, LLC,
SBA MONARCH TOWERS I, LLC,
SBA TOWERS USVI, INC.,
SBA GC TOWERS, LLC,
SBA TOWERS VII, LLC
SBA TOWERS V, LLC
SBA TOWERS VI, LLC
as Closing Date Borrowers,
and
MIDLAND LOAN SERVICES, A DIVISION OF PNC BANK, NATIONAL ASSOCIATION,
as Servicer on behalf of Deutsche Bank Trust Company Americas, as Trustee
dated as of July 14, 2020
TABLE OF CONTENTS
Page | ||||||
ARTICLE I | ||||||
DEFINITIONS AND INCORPORATION BY REFERENCE | ||||||
Section 1.01 |
Definitions. | 2 | ||||
ARTICLE II | ||||||
2020-1C COMPONENT, 2020-2C COMPONENT AND 2020-2R COMPONENT DETAILS | ||||||
Section 2.01 |
2020-1C Component, 2020-2C Component and 2020-2R Component Details. | 3 | ||||
ARTICLE III | ||||||
MORTGAGE LOAN INCREASE | ||||||
Section 3.01 |
Loan Increase. | 5 | ||||
Section 3.02 |
Use of Proceeds. | 6 | ||||
ARTICLE IV | ||||||
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWERS | ||||||
Section 4.01 |
Representations and Warranties. | 6 | ||||
Section 4.02 |
Amendments to Exhibits and Schedules to the Loan Agreement. | 7 | ||||
ARTICLE V | ||||||
GENERAL PROVISIONS | ||||||
Section 5.01 |
Governing Law. | 7 | ||||
Section 5.02 |
Severability. | 7 | ||||
Section 5.03 |
Counterparts. | 7 | ||||
ARTICLE VI | ||||||
APPLICABILITY OF THE LOAN AGREEMENT | ||||||
Section 6.01 |
Applicability. | 8 |
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SIXTH LOAN AND SECURITY AGREEMENT SUPPLEMENT
SIXTH LOAN AND SECURITY AGREEMENT SUPPLEMENT (this Loan Agreement Supplement), dated as of July 14, 2020, and entered into by and among SBA PROPERTIES, LLC, a Delaware limited liability company (SBA Properties), SBA SITES, LLC, a Delaware limited liability company (SBA Sites), SBA STRUCTURES, LLC, a Delaware limited liability company (SBA Structures), SBA INFRASTRUCTURE, LLC, a Delaware limited liability company (SBA Infrastructure), SBA MONARCH TOWERS III, LLC, a Delaware limited liability company (SBA Monarch III), SBA 2012 TC ASSETS PR, LLC, a Delaware limited liability company (SBA TC PR), SBA 2012 TC ASSETS, LLC, a Delaware limited liability company (SBA TC), SBA TOWERS IV, LLC, a Delaware limited liability company (SBA Towers IV), SBA MONARCH TOWERS I, LLC, a Delaware limited liability company (SBA Monarch I), SBA TOWERS USVI, INC., a U.S. Virgin Islands corporation (SBA USVI), SBA GC TOWERS, LLC, a Delaware limited liability company (SBA GC), SBA TOWERS VII, LLC, a Delaware limited liability company (SBA Towers VII), SBA TOWERS V, LLC, a Delaware limited liability company (SBA Towers V) and SBA TOWERS VI, LLC, a Delaware limited liability company (SBA Towers VI and, collectively with SBA Properties, SBA Sites, SBA Structures, SBA Infrastructure, SBA Monarch III, SBA TC PR, SBA TC, SBA Towers IV, SBA Monarch I, SBA USVI, SBA GC, SBA Towers VII and SBA Towers V, the Closing Date Borrowers and, each individually, a Closing Date Borrower), and MIDLAND LOAN SERVICES, A DIVISION OF PNC BANK, NATIONAL ASSOCIATION, as servicer (the Servicer), on behalf of DEUTSCHE BANK TRUST COMPANY AMERICAS, as trustee (the Trustee) under that certain Amended and Restated Trust and Servicing Agreement (as amended, restated, supplemented or otherwise modified from time to time, the Trust Agreement) dated as of October 15, 2014 among SBA DEPOSITOR LLC (the Depositor), the Servicer and the Trustee.
RECITALS
WHEREAS, the Closing Date Borrowers are the Borrowers under a Second Amended and Restated Loan and Security Agreement, dated as of October 15, 2014, as supplemented and amended by the First Loan and Security Agreement Supplement and Amendment, dated as of October 14, 2015, the Second Loan and Security Agreement Supplement, dated as of July 7, 2016, the Third Loan and Security Agreement Supplement and Amendment, dated as of April 17, 2017, the Fourth Loan and Security Agreement Supplement, dated as of March 9, 2018 and the Fifth Loan and Security Agreement Supplement, dated as of September 13, 2019 (the Loan Agreement), among the Closing Date Borrowers and the Servicer on behalf of the Trustee;
WHEREAS, pursuant to Section 3.2 of the Loan Agreement, the Closing Date Borrowers desire to effect a Loan Increase in an amount equal to $1,421,100,000 (the Sixth Mortgage Loan Increase), in the form of (i) one (1) component in an amount equal to $750,000,000 designated as the 2020-1C Component (the 2020-1C Component), (ii) one (1) component in an amount equal to $600,000,000 designated as the 2020-2C Component (the 2020-2C Component) and (iii) one (1) component in an amount equal to $71,100,000 designated as the 2020-2R Component (the 2020-2R Component), and the Lender has agreed to the Sixth Mortgage Loan Increase and to advance the amount of the Sixth Mortgage Loan Increase;
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WHEREAS, each of the 2020-1C Component, the 2020-2C Component and the 2020-2R Component constitutes a Component as defined in the Loan Agreement;
WHEREAS, the Closing Date Borrowers and the Lender intend these recitals to be a material part of this Loan Agreement Supplement; and
WHEREAS, all things necessary to make this Loan Agreement Supplement the valid and legally binding obligation of the Closing Date Borrowers in accordance with its terms, for the uses and purposes herein set forth, have been done and performed.
NOW, THEREFORE, it is mutually covenanted and agreed as follows:
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
Section 1.01 Definitions. All defined terms used herein and not defined herein shall have the meanings ascribed to such terms in the Loan Agreement. All words and phrases defined in the Loan Agreement shall have the same meanings in this Loan Agreement Supplement, except as otherwise appears in this Article. In addition, the following terms have the following meanings in this Loan Agreement Supplement unless the context clearly requires otherwise:
2020-1 Anticipated Repayment Date shall have the meaning ascribed to it in Section 2.01(a)(iv) hereof.
2020-1C Component shall have the meaning ascribed to it in the Recitals hereto.
2020-1C Note shall have the meaning ascribed to it in Section 3.01(b) hereof.
2020-1C Securities shall mean the Series 2020-1C securities issued by the SBA Tower Trust pursuant to the Trust Agreement corresponding to the 2020-1C Component.
2020-2 Anticipated Repayment Date shall have the meaning ascribed to it in Section 2.01(a)(iv) hereof.
2020-2C Component shall have the meaning ascribed to it in the Recitals hereto.
2020-2C Note shall have the meaning ascribed to it in Section 3.01(b) hereof.
2020-2C Securities shall mean the Series 2020-2C securities issued by the SBA Tower Trust pursuant to the Trust Agreement corresponding to the 2020-2C Component.
2020-2R Component shall have the meaning ascribed to it in the Recitals hereto.
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2020-2R Note shall have the meaning ascribed to it in Section 3.01(b) hereof.
2020-2R Securities shall mean the Series 2020-2R securities issued by the SBA Tower Trust pursuant to the Trust Agreement corresponding to the 2020-2R Component.
Additional Closing Date shall mean July 14, 2020.
Anticipated Repayment Date shall have the meaning ascribed to it in Section 2.01(a)(iv) hereof.
Component Rate shall mean, for each of the 2020-1C Component, the 2020-2C Component and the 2020-2R Component, the applicable rate per annum set forth in respect of such Component in Section 2.01(a)(i) hereof.
Loan Agreement shall have the meaning ascribed to it in the Recitals hereto.
Maturity Date shall mean the date set forth in Section 2.01(a)(iii) hereof.
Mortgage File shall have the meaning ascribed to it in the Trust Agreement.
Post-ARD Additional Interest Rate shall have the meaning ascribed to it in Section 2.01(a)(ii) hereof.
Sixth Mortgage Loan Increase shall have the meaning ascribed to it in the Recitals hereto.
Yield Maintenance shall have the meaning ascribed to it in Section 2.01(a)(iv) hereof.
Words importing the masculine gender include the feminine gender. Words importing persons include firms, associations and corporations. Words importing the singular number include the plural number and vice versa. Additional terms are defined in the body of this Loan Agreement Supplement.
In the event that any term or provision contained herein with respect to the 2020-1C Component, the 2020-2C Component or the 2020-2R Component shall conflict with or be inconsistent with any term or provision contained in the Loan Agreement, the terms and provisions of this Loan Agreement Supplement shall govern.
ARTICLE II
2020-1C COMPONENT, 2020-2C COMPONENT AND 2020-2R COMPONENT DETAILS
Section 2.01 2020-1C Component, 2020-2C Component and 2020-2R Component Details. (a) Except as otherwise set forth below, each of the 2020-1C Component, the 2020-2C Component and the 2020-2R Component authenticated and delivered under this Loan Agreement Supplement shall consist of one (1) Component having:
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(i) The designation, the initial Component Principal Balance and the Component Rate set forth below.
Component |
Initial Component
Principal Balance |
Component
Rate |
||||||
2020-1C Component |
$ | 750,000,000 | 1.884 | % | ||||
2020-2C Component |
$ | 600,000,000 | 2.328 | % | ||||
2020-2R Component |
$ | 71,100,000 | 4.336 | % |
(ii) With respect to the 2020-1C Component and 2020-2C Component only, Post-ARD Additional Interest Rate determined by the Servicer to be the greater of (i) five percent (5%) and (ii) the amount, if any, by which the sum of the following exceeds the Component Rate for such Component: (x) the yield to maturity (adjusted to a mortgage equivalent basis pursuant to the standards and practices of the Securities Industry Association) on the Anticipated Repayment Date with respect to such Component, of the United States Treasury Security having a term closest to ten (10) years plus (y) the Spread set forth below in the appropriate row corresponding to such Component plus (z) five percent (5%). No Post-ARD Additional Interest will accrue with respect to the 2020-2R Component.
Component |
Spread | |||
2020-1C |
1.60 | % | ||
2020-2C |
1.85 | % |
(iii) (x) With respect to the 2020-1C Component, a Maturity Date which is the Due Date occurring in July 2050 and (y) with respect to the 2020-2C Component and 2020-2R Component, a Maturity Date which is the Due Date occurring in July 2052, in each case or such earlier date on which the final payment of principal of the Notes becomes due and payable as provided in the Loan Agreement, whether at such Maturity Date, by acceleration, or otherwise.
(iv) With respect to the 2020-1C Component and 2020-2C Component only, Yield Maintenance in an amount equal to the excess, if any, of (i) the present value as of the date of prepayment (by acceleration or otherwise) of all future installments of principal and interest that the Closing Date Borrowers would otherwise be required to pay on such Component (or portion thereof) on the related Due Date from the date of such prepayment to and including the first Due Date that occurs less than twelve months prior to the Anticipated Repayment Date for such Component absent such prepayment, assuming the entire unpaid Principal Amount of such Component is required to be paid on such Due Date, with such present value determined by the use of a discount rate equal to the sum of (x) the yield to maturity (adjusted to a mortgage equivalent basis pursuant to the standards and practices of the Securities Industry Association), on the Due Date relating to the date of such prepayment, of the United States Treasury Security having the maturity closest to the Distribution Date that occurs twelve months prior to (x) with respect to the 2020-1C Component, the Assumed Final Distribution Date related to the Due Date in January 2026 (such date with respect to each of the 2020-1C Component, the 2020-1 Anticipated Repayment Date) and (y) with respect to the 2020-2C Component, the
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Assumed Final Distribution Date related to the Due Date in January 2028 (such date with respect to the 2020-2C Component and the 2020-2R Component, the 2020-2 Anticipated Repayment Date; each of the 2020-1 Anticipated Repayment Date and the 2020-2 Anticipated Repayment Date, an Anticipated Repayment Date) plus (y) 0.50% over (ii) the Component Principal Balance of such Component (or portion thereof) on the date of such prepayment. No Yield Maintenance is payable in connection with any prepayment of the 2020-1C Component or 2020-2C Component that occurs less than twelve months prior to the applicable Anticipated Repayment Date for either such Component. No Yield Maintenance is payable in connection with any repayment of the 2020-2R Component at any time.
(v) Interest shall accrue on each of the (i) 2020-1C Component and the corresponding 2020-1C Note, (ii) 2020-2C Component and the corresponding 2020-2C Note and (iii) 2020-2R Component and the corresponding 2020-2R Note, from and including the Additional Closing Date.
(b) There are no scheduled principal payments in respect of any of the 2020-1C Component, 2020-2C Component or the 2020-2R Component, and the Closing Date Borrowers shall not be required to pay any principal of the 2020-1C Component, 2020-2C Component or the 2020-2R Component prior to the applicable Anticipated Repayment Date, other than after the occurrence and during the continuation of an Amortization Period or an Event of Default as provided in the Loan Agreement or as otherwise required under the terms of the Loan Documents.
ARTICLE III
MORTGAGE LOAN INCREASE
Section 3.01 Loan Increase. (a) Pursuant to Section 3.2 of the Loan Agreement, the Lender and the Closing Date Borrowers agree to the Sixth Mortgage Loan Increase corresponding to the 2020-1C Component, 2020-2C Component and the 2020-2R Component.
(b) On the Additional Closing Date, each Closing Date Borrower shall execute and deliver to the Trustee (i) a promissory note payable to the order of the Trustee evidencing the 2020-1C Component, in the initial principal amount equal to $750,000,000 (the 2020-1C Note), (ii) a promissory note payable to the order of the Trustee evidencing the 2020-2C Component, in the initial principal amount equal to $600,000,000 (the 2020-2C Note) and (iii) a promissory note payable to the order of the Trustee evidencing the 2020-2R Component, in the initial principal amount equal to $71,100,000 (the 2020-2R Note). Each of the 2020-1C Note, the 2020-2C Note and the 2020-2R Note shall bear interest on the unpaid principal amount thereof at the applicable Component Rate set forth in respect of such Component in Section 2.01(a)(i) hereof and mature on the Maturity Date set forth in Section 2.01(a)(iii) hereof.
(c) The Closing Date Borrowers hereby agree that they will deliver to and deposit with, or cause to be delivered to and deposited with, the Servicer, on or before the Additional Closing Date (or, if any of the following items are not in the actual possession of the Closing Date Borrowers, as soon as reasonably practical, but in any event within 90 days after the Additional Closing Date): (i) the documents with respect to the Sixth Mortgage Loan Increase
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required for the Mortgage File (other than the 2020-1C Note, the 2020-2C Note and the 2020-2R Note referred to in Section 3.01(b) hereof) and (ii) originals or copies of all other documents, certificates and opinions in the possession or under the control of the Closing Date Borrowers with respect to the Sixth Mortgage Loan Increase that are necessary for the ongoing servicing and administration of the Loan.
(d) The Closing Date Borrowers hereby represent and warrant to the Lender that each condition of Section 3.2 of the Loan Agreement in respect of the Sixth Mortgage Loan Increase has been satisfied, as of the Additional Closing Date, including the delivery to:
(i) the Servicer of an opinion of counsel satisfying the requirements of Section 3.2(A)(vi) of the Loan Agreement;
(ii) the Trustee of the list required to be delivered pursuant to Section 3.2(A)(x) of the Loan Agreement of the Mortgaged Sites encumbered by Deeds of Trust being amended in connection with the Sixth Mortgage Loan Increase, identified by Site number, together with such other information with respect to such Mortgaged Sites as shall have been reasonably requested by the Trustee; and
(iii) the Servicer of an Officers Certificate dated as of the Additional Closing Date to the effect set forth in Section 3.2(B) of the Loan Agreement.
(e) The parties hereto agree that the Additional Closing Date is an Allocated Loan Amount Determination Date, pursuant to Section 11.8 of the Loan Agreement, and the Servicer has determined the Allocated Loan Amounts for each Site after giving effect to the Sixth Mortgage Loan Increase, as described herein, based on information provided to it by the Manager, and until any subsequent Allocated Loan Amount Determination Date, such Allocated Loan Amounts shall be as set forth on Exhibit A hereto.
Section 3.02 Use of Proceeds. The proceeds from the sale of the 2020-1C Securities, the 2020-2C Securities and the 2020-2R Securities shall be used to fund the Sixth Mortgage Loan Increase and the proceeds of the Sixth Mortgage Loan Increase shall be used to (i) prepay the 2015-1C Component, including accrued and unpaid interest thereon, (ii) prepay the 2016-1C Component, including accrued and unpaid interest thereon, (iii) pay all recording fees and taxes, reasonable out of pocket costs and expenses incurred by the Lender, including reasonable legal fees and expenses of counsel to the Lender, and other costs and expenses approved by the Lender (which approval will not be unreasonably withheld or delayed) related to the 2020-1C Component, the 2020-2C Component and the 2020-2R Component; and (iv) pay all fees and expenses incurred by the Closing Date Borrowers; and (v) make a cash distribution to the Guarantor.
ARTICLE IV
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWERS
Section 4.01 Representations and Warranties. (a) Each Closing Date Borrower hereby represents and warrants to the Lender that, as to itself and its Sites, each of the representations and warranties set forth in Article IV of the Loan Agreement is true as of the Additional Closing Date.
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(b) Each of the Closing Date Borrowers hereby represents and warrants to the Lender that each condition of Section 3.2 of the Loan Agreement and Section 3.25 of the Trust Agreement have been satisfied as of the Additional Closing Date.
Section 4.02 Amendments to Exhibits and Schedules to the Loan Agreement.
(a) The parties hereto agree that Exhibits B, C and D of the Loan Agreement are hereby deleted in their entirety and replaced by Exhibits B, C and D hereto.
(b) The parties hereto agree that Schedules 4.25, 4.26 and 4.27 of the Loan Agreement are hereby deleted in their entirety and replaced by Schedules 4.25, 4.26 and 4.27, respectively, hereto.
ARTICLE V
GENERAL PROVISIONS
Section 5.01 Governing Law. THIS LOAN AGREEMENT SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE CLOSING DATE BORROWERS IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY NEW YORK STATE COURT OR UNITED STATES FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR IN RELATION TO THE LOAN AGREEMENT, THIS LOAN AGREEMENT SUPPLEMENT OR THE OTHER LOAN DOCUMENTS.
Section 5.02 Severability. In case any provision in this Loan Agreement Supplement shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
Section 5.03 Counterparts. This Loan Agreement Supplement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such respective counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of a signature page of this Loan Agreement Supplement in Portable Document Format (PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart of this Loan Agreement Supplement. The parties agree that this Loan Agreement Supplement or any amendment hereto or any other document necessary for the consummation of the transaction contemplated by this Loan Agreement Supplement may be accepted, executed or agreed to through the use of an electronic signature in accordance with the Electronic Signatures in Global and National Commerce Act, Title 15, United States Code, Sections 7001 et seq., the Uniform Electronic Transaction Act and any applicable state law. Electronic signature shall mean any electronic symbol or process attached to, or associated with, a contract or other record and adopted by a person with the in-tent to sign, authenticate or accept such contract or record and shall be the same as handwritten signatures for the purposes of validity,
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enforceability and admissibility. The words execution, signed, signature, delivery, and words of like import in or relating to this Loan Agreement Supplement or any document to be signed in connection with this Loan Agreement Supplement shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form.
ARTICLE VI
APPLICABILITY OF THE LOAN AGREEMENT
Section 6.01 Applicability. The provisions of the Loan Agreement are hereby ratified, approved and confirmed, as supplemented and amended by this Loan Agreement Supplement. The representations, warranties and covenants contained in the Loan Agreement (except as expressly modified herein) are hereby reaffirmed with the same force and effect as if fully set forth herein and made again as of the Additional Closing Date.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the Closing Date Borrowers and the Servicer on behalf of the Trustee have caused this Loan Agreement Supplement to be duly executed by their respective officers, thereunto duly authorized, all as of the day and year first above written.
SBA PROPERTIES, LLC, as Closing Date Borrower | SBA SITES, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
SBA STRUCTURES, LLC, as Closing Date Borrower | SBA INFRASTRUCTURE, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
SBA MONARCH TOWERS III, LLC, as Closing Date Borrower | SBA 2012 TC ASSETS PR, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
SBA 2012 TC ASSETS, LLC, as Closing Date Borrower | SBA TOWERS IV, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
Signature Page for Sixth Loan Suppleme
SBA MONARCH TOWERS I, LLC, as Closing Date Borrower | SBA TOWERS USVI, INC., as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
SBA GC TOWERS, LLC, as Closing Date Borrower | SBA TOWERS VII, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
SBA TOWERS V, LLC, as Closing Date Borrower | SBA TOWERS VI, LLC, as Closing Date Borrower | |||||||
By: | /s/ Thomas P. Hunt | By: | /s/ Thomas P. Hunt | |||||
Name: | Thomas P. Hunt | Name: | Thomas P. Hunt | |||||
Title: | Executive Vice President and General Counsel | Title: | Executive Vice President and General Counsel |
Signature Page for Sixth Loan Suppleme
MIDLAND LOAN SERVICES, A DIVISION OF PNC BANK, NATIONAL ASSOCIATION, as Servicer | ||||||||
By: | /s/ David A. Eckels | |||||||
Name: | David A. Eckels | |||||||
Title: | Senior Vice President |
Signature Page for Sixth Loan Suppleme