The combined company has over $3.7 billion of securitized tower notes outstanding today with an average coupon of 5.18% for at least four more years and half of that exposure is locked on our side, the $1.9 billion. As you know we've locked the underlying LIBOR index another five years beyond that so out a total of nine years. This results in an extremely efficient way to capitalize this business and maximize again the change in shareholder return based upon a given level of revenue growth.
You will see over time probably as we continue to grow EBITDA through the year 2007 we would expect this balance sheet to de-leverage rapidly. This would put us above what our target level of leverage is. As we continue to dialogue with the rating agencies, we'll continue to update that thinking. But at 8.2, I would expect over time that would come down modestly over time, but you can be assured we will continue to approach the business as we have in the past.
Moving on to Page 17, John mentioned the combination of the pro forma snapshot, about $1.2 billion in tower revenue, about $1.3 billion in total revenue if you include our services business. It is neutral at the recurring cash flow line but for the dilution that occurs from the $550 million of new borrowings that we will take on to fund the cash election option, assuming that that occurs, and we are operating under the assumption that it will. That's very consistent with what you've seen us do in the past.
Again, short term dilution from the increased interest expense for the benefit of buying the equity in for the long term growth prospects and the accretion long term is very consistent with what we've done frankly over the last three or four years and this is exactly in keeping with that and so we're again very pleased to have the option here with the cash election and are very comfortable with the economics around that.
Moving on to the Page 18 pro forma capitalization. I mentioned a very strong balance sheet. 65% of the capitalization of the company's still being equity capital today, 33% debt and small preferred outstanding, about 8.2 times debt to EBITDA and greater than two times interest coverage going in. Obviously that will improve rapidly going forward. So we are quite comfortable with where we stand pro forma for this transaction, and again it wasn't by accident. We believe this is quite optimized from a capital structure perspective.
Just to wrap up before we turn it over to questions. This is a continuation of our strategy. It's not about scale and synergies. It is about the opportunity to increase the growth rate and financial returns to our shareholders and better serve the growing demand we see from our customers in these top 100 markets.
We like the downside protection. Again the 70% statistic. If you believe the Global Signal portfolio only will perform 70% as well as ours, again we
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