Wireless Capital Partners (WCP) is in the market with its first-ever term securitization backed by multiple assets and ownership interests in sites used for wireless communication equipment and other related purposes.

The $301 million transaction is lead managed by Deutsche Bank Securities. After the deal closes, almost all of WCP’s cellular sites will be securitized in this transaction, according to a presale report from Fitch Ratings.

The rating agency said that this is unlike a typical cell tower securitization where the towers serve as collateral. The collateral for this deal comprise purchased leasehold interests, non-recourse loans (secured by leasehold interests), and an unsecured payment obligation from AT&T as well as the revenue stream from the payments the owner of the tower and/or tenants of the site pay to WCP.

The notes, according to Fitch, are guaranteed by the direct parents of the asset entities and are secured by a pledge and first priority perfected security interest in 100% of the equity interest of the issuers and the asset entities.

The ownership interest in the wireless sites consists of lease assets, loan assets, ground leases, fee assets, and easement assets in land, rooftops, or other structures on which site space is used by wireless service providers, independent tower operators, and other users pursuant to leases or licenses for placement of the tenants’ tower and wireless communication equipment and other purposes, Fitch said.

The notes are secured mostly by mortgages on the interests of the asset entities in wireless sites representing no less than 95% of the net cash flow from purchased leasehold interests and a perfected security interest in loan assets, Fitch said. Aside from this, a portion of the notes are secured by payment obligations guaranteed by AT&T.

Proceeds from the deal will be used to refinance the debt outstanding under existing financing and for general corporate purposes. The borrowers expect to utilize the funds to buy more wireless site assets over the 12-month acquisition period after the closing date.

Meanwhile, Ally Financial is in the market with an over $1 billion auto–backed ABS, Ally Auto Receivables Trust 2010-3. 

The six-tranche offering is lead managed by Citigroup Global Markets. Co-managers on the deal are RBS Securities and UBS.

The deal comes after General Motors Corp.‘s announcement that it will be purchasing AmeriCredit in an all-cash transaction valued at around $3.5 billion. It has been four years after General Motors sold a majority stake in what was then called General Motors Acceptance Corp. (GMAC), which is now Ally Financial.

According to a report from Moody’s Investors Service,  General Motors’ purchase of AmeriCredit will not impact Ally Financial’s retail loan ABS deals. Ally Financial, according to Moody’s, is a key provider of auto loans to General Motors prime car buyers. AmeriCredit’s core customer base, on the other hand, is auto loan originations to sub-650 FICO borrowers.

Moody’s cited the fact that General Motors’officials have indicated they intend to have AmeriCredit focus on its core competency instead of originating loans to higher credit quality car buyers, which precludes the possibility that either originator will expand into the other’s market segment.

"As evidenced by their retail auto loan securitizations, Ally Financial’s loan orginations are much higher in credit quality than AmeriCredit’s core competency," Moody's analysts wrote.

For instance, Moody's cited the weighted average FICO scores for Ally Auto Receivables Trust 2010-1 and 2010-2, which were 758 and 764 respectively. There were no loans in either transaction with a FICO score below 650, Moody’s said.

For StructuredFinanceNews.com’s write-up on Ally Auto Receivables 2010-2, please click this link.

Additional preliminary information on both deals are available via the link below from the ASR Scorecard database.

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