Revenue from billboard advertising and related contracts will collateralize $765.1 million in asset-backed securities (ABS), from manager AOA Management.
Adams Outdoor Advertising, 2026-1, will sell the notes through three tranches of notes that have an anticipated repayment (ARD) date of July 2031 and a final maturity date of July 2056. The deal uses a master trust structure and can issue additional notes if certain conditions are met.
The issuer is one of the nation's largest outdoor advertising companies, providing services in thirteen markets and surrounding areas in the Midwest, Southeast and Mid-Atlantic states, according to Kroll Bond Rating Agency.
Underlying billboard assets include billboards, displays in transit stops, malls and public garages, online services, customer contracts and electronic displays for billboards, KBRA said.
Barclays Capital is the lead structuring agent, while Morgan Stanley is the joint structuring agent and joint bookrunner.
After senior fees, interest on the notes is paid monthly on all outstanding classes of notes in alphanumerical order, Adams Outdoor Advertising. No amortization will be scheduled on any of the rated notes up through the anticipated repayment date, KBRA said.
The deal also benefits from subordination, KBRA said.
The deal includes a cash trap provision that calls for half of available funds to be deposited into the cash trap reserve sub-account if the debt service coverage ratio (DSCR) is between 1.35x and 1.275x. If the DSCR equals 1.275x or less, then the transaction will deposit all available funds into the account, the rating agency said.
KBRA assigns A, BBB and BB- to classes A2, B and C, respectively.
