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InSite Wireless taps ABS to refinance debt, fund tower acquisitions

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InSite Wireless Group is tapping the securitization market to refinancing some of its outstanding debt and fund the acquisition of additional wireless towers.

The company is marketing another $298.5 million of notes ultimately backed by revenue from tower leases from an existing master securitization trust. The proceeds will be used to repay the inaugural series of notes issued from the trust in 2013 as well as a portion of the sponsor’s corporate credit facility and fund a $45 million account for the future acquisition of cellular sites.

After the new notes are issued and the 2013 notes are repaid, InSite will have a total of $599.5 million of wireless tower notes outstanding, including the second series of notes issued in 2016.

Over the past two years, the number of sites securing the outstanding notes has increased from 1,196 to 1,568 and the number of tenant leases has increased from 2,800 to 3,299.

The ARRR and ARRNCF has increased from $63.4 million and $50.0 million respectively, to $83.3 million and $65.4 million respectively. ARRR per Site and ARRNCF per Site has increased from $53.0k and $41.8k, respectively, to $53.2k and $41.7k, respectively, due primarily to contractual escalation and lease up of additional tenants.

The new note offering consists of three tranches of fixed-rate notes. The $219 million tranche of class A notes are provisionally rated single A by Kroll Bond Rating Agency and Fitch Ratings; $57 million of class B notes are rated BBB/BBB- and $22 million of class C notes are rated B/B-. All of the notes are expected to be repaid in December 2023.

Barclays Capital and Guggenheim Securities are joint structuring advisors and bookrunning managers.

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Wireless tower ABS