SBACommunications Corp. received board approval to convert into a realestate investment trust, or REIT, for tax purposes.
The company noted in a statement that the conversion shouldhave "little to no effect" on operations as the company has beenplanning for the conversion for about two years. It intends to elect to betaxed as a REIT starting with its taxable year ending Dec. 31.
"We believe REIT status is the optimal structure forour business given the real estate nature of our assets," said SBAPresident and CEO Jeffrey Stoops in an Oct. 3 statement.
As part of its REIT conversion plan, SBA will merge with anewly formed, wholly owned unit to "ensure the effective adoption ofcertain charter provisions that implement standard REIT-related ownershiplimitations and transfer restrictions related to its capital stock,"the company said. A special meeting for a stockholder vote on the proposedmerger will be scheduled during the fourth quarter.
Skadden Arps Slate Meagher & Flom LLP and GreenbergTraurig PA are acting as principal advisers to SBA related to the REITconversion. SBA has received an opinion from Skadden Arps Slate Meagher &Flom LLP that SBA will qualify as a REIT as of Jan. 1, 2016.