Months after raising $1.9 billion in the cell tower asset-backed securities (ABS) sector's largest-ever deal, Vertical Bridge REIT received a $1.5 billion equity investment from KKR.
The investment means Vertical Bridge has a fully funded, long-term capital structure that supports its ongoing vision of owning and operating a nationwide portfolio of more than 17,000 towers.
Last February's securitization, backed by revenue from 10,425 mortgages on cellular tower sites across the country, helped to fund some of those operations. In addition to being the sector's largest-ever deal, it also included the sector's first single-B rated tranche, according to Fitch Ratings analysts, which assessed the deal.
The transaction was the latest in a master trust, which had a balance of about $4.1 billion at press time, according to the Asset Securitization Report's deal database and Fitch Ratings.
"We are pleased to have KKR as an experienced, long-term investor as we expand our platform, advance organic development, and selectively pursue M&A opportunities that strengthen our portfolio," according to a statement from Ron Bizick, president and chief executive officer of Vertical Bridge.
According to a statement from KKR, the company had invested more than $40 billion in equity in digital infrastructure globally.
"The convergence of 5G densification, edge compute, and surging data demand is creating a structural need for more and better located wireless infrastructure," according to a statement from Waldemar Szlezak, global head of digital infrastructure at KKR. "This investment builds upon KKR's foundation as a leading investor in mission-critical digital infrastructure, and we look forward to supporting the company's next phase of growth."
