KBRA Assigns Preliminary Ratings to ExteNet Issuer, LLC, Series 2024-1 Senior Secured Notes
2024年7月9日 - 1:42AM
ビジネスワイヤ(英語)
KBRA is assigning preliminary ratings to the Series 2024-1 Class
A-2 Notes, Class B Notes, and Class C Notes (the Series 2024-1
Notes) from ExteNet Issuer, LLC, (the Issuer), a communications
infrastructure securitization.
The Series 2024-1 Notes are anticipated to be issued by ExteNet
Issuer, LLC (the Issuer) and represents ExteNet Systems, LLC’
(ExteNet, the Company, or the Manager) second securitization. The
transaction structure is a master trust, and as such, the indenture
permits the issuance of additional classes and series of notes. The
proceeds from the sale of the Notes will primarily be used to repay
the Series 2019-1 Notes, fund certain expenses and accounts, and
for general corporate purposes.
The business of the asset entities listed in the Transaction
Parties Section consists of owning, managing and operating
multi-carrier and multi-technology DNS, which are licensed for use
by mobile network operators and other commercial enterprises in
both indoor and outdoor spaces, although the collateral as of the
2024-1 closing date will only include outdoor spaces. The assets
also include related antennas, fiber, other equipment, and the
related distributed network system agreements (DNS Access
Agreements) entered into with the relevant property owner, utility,
or municipal authority to use locations where the equipment can be
placed (DNS sites). The assets also include customer contracts
between the Asset Entities and the customers (DNS Licenses) and
rights to connect and utilize the equipment, including master
customer contracts that cover multiple DNS sites. Each discrete
collection of outdoor DNS Sites and related DNS Equipment within a
specific geographic area under one or more DNS Licenses, and each
collection of DNS Sites and related DNS Equipment contained on the
same property is referred to as DNS Network. Together, the DNS
Sites and DNS Networks along with related agreements are the DNS
Assets.
As of December 31, 2023 (Statistical Cut-Off Date), the
collateral included 137 DNS Networks across 26 states, and had an
aggregate Annualized Run Rate Revenue (ARRR) of approximately $63.3
million and an aggregate Annualized Run Rate Net Cash Flow (ARRNCF)
of $35.1 million. The primary Licensees at the DNS Sites are
providers of wireless telephony/data services, including Verizon
Wireless, Inc., AT&T Inc. and T-Mobile USA, Inc (which together
comprise 98.9% of ARRR). The weighted average remaining tenant
lease term based on ARRR is approximately 4.5 years without
renewals and 14.8 years including renewals. These tenant leases
include rent escalations with a weighted average escalation of
approximately 1.7% per year.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Communications Infrastructure Securitization (CIS) Global
Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005015
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Analytical
Xilun Chen, Managing Director (Lead Analyst) +1 646-731-2431
xilun.chen@kbra.com
Matthew Gardener, Director +1 646-731-1276
matthew.gardener@kbra.com
Fred Perreten, Managing Director +1 646-731-2454
fred.perreten@kbra.com
Thomas Berle Carman, Associate +1 646-731-1241
thomas.carman@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com