In its first public securitization, MTP ABS Funding is preparing to sell $386 million in bonds secured by first-lien property interests associated with a portfolio of 861 cellular sites.
The collateral pool also includes a mix of fee-owned land sites, long-term leasehold interests, and easement-based sites, according to Kroll Bond Rating Agency. Overall, the portfolio is composed of 787 easement sites, 35 fee sites and 39 master lease sites, KBRA said.
MTP ABS Funding, series 2026-1, will issue the asset-backed securities through three tranches, all of which have an anticipated repayment date of April 2031 and a final maturity date of April 2056, KBRA said.
Tower Point Capital is the deal's manager, while Wilmington Trust has signed on as back-up manager, according to the rating agency.
TowerPoint is a U.S. digital infrastructure platform that is considered to have one of the largest privately held wireless infrastructure portfolios in the U.S., KBRA said. It acquires, develops and manages so-called mission-critical telecommunications infrastructure assets. Such assets include rooftop and land-based wireless sites and macro cell towers, the rating agency said.
Another aspect of the portfolio is that it supports 1,084 tenant leases representing 83 tenants, which generate $30.7 million in annualized asset gross revenue, the rating agency said.
High-quality, credit worthy tenants account for 88.8% of the portfolio on an annualized asset gross revenue basis, KBRA said. That tenant roster includes three of the largest U.S. national wireless carriers, T-Mobile (2.5%), AT&T (18.3%) and Verizon (17.2%).
Tower operators Crown Castle and American Tower account for 15.0% and 10.3% of the portfolio, respectively.
Although the tenants are high quality, there is a caveat, because gross revenue is primarily tied to leases with less than five years remaining on their current term, not including renewals, KBRA said. On a weighted average (WA) basis, the leases have a remaining term of 2.7 years, the rating agency said.
In terms of its structure and credit protections, the deal includes a liquidity reserve account, a class A leverage cash sweep, and a cash trap reserve, KBRA said.
KBRA assigns A, A and BBB- to classes A-1V, A2 and B, respectively.
