Vertical Bridge Securitizes Broadcast Tower Portfolio

November 19, 2018

Vertical Bridge has issued $72.2 million of secured tower revenue notes in a private asset-backed securitization transaction. Rated by Morningstar, the revenue notes were issued in three classes: a $30.3 million tranche, rated A+; a $10.1 million tranche, rated A-; and a $38 million tranche, rated BBB.

“This securitization will allow us to continue to meet the evolving needs of our customers across the communications spectrum,” said Alex Gellman, CEO and co-founder of Vertical Bridge. “The broadcast towers included in this securitization have highly favorable characteristics such as their height and capacity. They are located in urban, suburban, key corridor and rural markets, and that makes them attractive to a variety of tenants.”

The revenue notes are collateralized by current leases held by tenants on 407 broadcast sites across 45 states. They have a five-year anticipated repayment date with a 30-year final maturity.

This is Vertical Bridge’s fourth successful securitization in less than two and a half years, and the second of 2018. This past February, Vertical Bridge issued $236 million of secured tower revenue notes and also closed on a new $250 million senior credit facility.

In June 2016, the firm completed $321 million in commercial mortgage-backed securities financing to add flexibility to the firm’s real estate portfolio expansion. In October 2016, the firm issued $196 million of secured tower revenue securities to support infrastructure investments.

Guggenheim Securities served as structuring agent and bookrunning manager for the offering.