Kroll Bond Rating Agency Assigns Final Ratings to Vertical Bridge CC, LLC, Series 2016-2
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of secured tower revenue notes, series 2016-2 (the "Notes") issued by Vertical Bridge CC, LLC (see ratings list below).
Proceeds from the sale of the Notes will be used to purchase 407 sites pursuant to 829 tenant leases. On the sites are broadcast and/or communication towers which are leased to radio and television broadcasters or other wireless communications companies. The portfolio has an aggregate annualized revenue of approximately $34.6 million calculated for the month of August 2016.
This transaction represents the second securitization for Vertical Bridge Management, LLC ("Vertical Bridge", the "Manager" or the "Company"). Vertical Bridge is a privately-owned real estate investment trust that owns and operates wireless communications infrastructure in the United States.
The transaction will benefit from sufficient credit support, along with a dynamic transaction structure that accelerates principal payments to the noteholders upon the weakening of collateral performance. Such structural features include cash trap conditions, servicer termination events and reserve accounts as further described in the Vertical Bridge CC, LLC, Series 2016-2 Presale Report.
KBRA analyzed the transaction using both KBRA's General Rating Methodology for Asset-Backed Securities published on July 30, 2012 and KBRA's CMBS Property Evaluation Methodology published on December 3, 2015.
|Series and Class||Rating||Principal Balance (USD)|
|Series 2016-2, Class A||BBB+(sf)||$174,200,000|
|Series 2016-2, Class B||BBB-(sf)||$21,800,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction's representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA's disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: ABS: Vertical Bridge CC,LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
- General Rating Methodology for Asset-Backed Securities
- Vertical Bridge CC, LLC, Series 2016-2 Presale Report
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).