Wireless PropCo. Funding is returning to the securitization market for its second deal, to raise $310.7 million through the series 2025-1 notes.
This is the second securitization for Symphony Towers, which manages one of the largest private telecom infrastructure platforms in the United States. Revenue from 1,427 tenant leases on 977 securitized cellular sites across 50 states will collateralize the notes. A vast majority of the bonds' underlying revenue (83.6%) are from high quality, credit worthy tenants,
The entity is a consolidation of several companies—Palistar Communications, Wireless TowerCo, and Infrastructure Fund II investments, including Wireless PropCo and CTI Towers, according to Kroll Bond Rating Agency.
The whole business securitization will issue notes through four classes of A, B and C notes, and uses a master trust structure, so it can issue additional classes of notes, KBRA said.
Among the initial classes of notes, the A1V tranche has an anticipated repayment date of June 2028, and the A2 through C tranches have an anticipated repayment date of June 2030. The legal final maturity dates on all the notes is June 2055, KBRA said.
Wireless PropCo Funding's structural features include a liquidity reserve account with an amount representing six months of interest due, and senior fees and expenses.
There is also a cash trap and a cash sweep condition, KBRA said. The former requires that if the senior debt service ratio is less than 1.6x, then all available funds will be deposited int the cash trap reserve account. The cash sweep condition requires that if the senior leverage ratio exceeds the maximum senior leverage ratio, then the deal will sweep cash flows to pay down the notes until the senior leverage ratio is less than or equal to the maximum senior leverage ratio.
There is also an amortization period which be triggered if on any payment date the senior SCR fall below 1.40X. During that time, no interest or principal will be paid to subordinated notes until the class A and B notes are fully repaid.
Morgan Stanley is the deal's manager, according to Asset Securitization Report's deal database.
KBRA assigns A to the A1 and A2 notes; BBB to the class B notes and BB- to the class C notes. The ASR deal database notes that S&P Global Ratings assigns A to the A1V and A2 notes; BBB to the class B notes and BB- to the class C notes.
