Landmark Infrastructure Products is marketing $133.1 million of notes backed by property leased to owners of wireless towers and billboards, according to Fitch Ratings.

Secured Tenant Site Contract Revenue Notes, Series 2016-1 consists of two tranches notes with an expected repayment date of June 2021: $103.9 million of class A notes benefit from credit enhancement of 21.9% and are provisionally rated A- b Fitch and $29.2 million of class B notes are rated BB-.

Proceeds from the notes will be used to refinance a portion of existing indebtedness and for general corporate purposes.

RBC Capital Markets is the structuring agency and underwriter.

The ownership interest in the sites consists of perpetual easements, long-term easements, prepaid leases, and fee interests in land, rooftops, or other structures on which site space is allocated for placement and operation of wireless tower and wireless communication equipment (84% of collateral) and outdoor advertisements (16% of the collateral).

The 796 tenant sites included in this pool represent approximately 35% of all Landmark entity sites.

Among the deal’s strength’s, according to Fitch, is the fact that the  portfolio  is  relatively  geographically  disbursed  over  45  states  and  Washington  D.C.;  the  largest  state,  California,  accounts  for  13.3%  of  NCF.  Investment-grade-rated tenants  account  for  48.6%  of  net cash flows.  Also, the  tenant  leases  typically  have  automatic  contractual  extension  options; they have an average remaining lease term of 3.7 years and a fully extended average lease term of 20.7 years.

The  largest  tenant  as  a  percentage  of  annualized  run  rate  revenue  is  T-Mobile  (16.2%)  followed by AT&T Mobility (13.6%). The four largest tenants represent 54.2% of adjusted rate of return.

The transaction allows for the issuance of additional notes, which may  rank  senior,  pari  passu  with,  or  subordinate to  the  2016-1  notes. These additional notes may be issued without the benefit of additional collateral, provided the debt service coverage ratio, post-issuance, is not less than 2.0x.

 The possibility of future ratings upgrades may be limited due to this provision.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.