Six months after Landmark Dividend completed its inaugural securitization of lease revenue from wireless carrier and tower operator tenants located at 1,957, the sponsor is returning to sell $268 million in asset-backed securities (ABS).
The issuer, LMDV Issuer Co., series 2026-1, is the latest from a master trust that will sell the notes through class A, B and C tranches, according to Kroll Bond Rating Agency. Notes have an anticipated repayment date of July 2031, with a final maturity date of July 2056, according to KBRA.
LMDV Issuer's assets include tenant sites, associated interests in real property and rental income generating tenant leases and related contractual rights, according to KBRA.
The deal's credit supports include tow reserve accounts—one for a liquidity reserve and a cash trap reserve account, according to the rating agency. The liquidity reserve is funded to an amount that represents about three months of scheduled interest on the class A and class B notes.
Also, a cash trap account captures excess available funds if the senior debt service coverage ratio (DSCR) is less than or equal to 1.35x after funds have been deposited into the liquidity reserve account and have reached the required liquidity reserve amount.
Also, in December 2028, the series 2025-1 class C notes are subject to scheduled annual amortization of 7.5%, an uncommon feature for transactions like this.
There is an amortization period built in, stipulating that prior to the anticipated repayment date, if the senior DSCR falls below 1.20x as of the end of any calendar month, which will trigger an amortization period, KBRA said.
Contracts in the pool have a remaining term of 24.4 years, which is slightly longer than the remaining term on the LMDV Issuer, series 2025-1. That series had a remaining term of 22.4 years, according to the rating agency.
KBRA assigns A-, BBB and BB- to the classes A-2, B and C notes.
