Fitch has issued a presale report on a $1.8 billion securities deal backed by mortgages secured by interests of borrowers that own or lease 5,195 wireless communication sites.
The transaction, American Tower Trust I’s Secured Tower Revenue Securities, Series 2013-1A and 2013-2A, will be issued pursuant to a 2007 trust agreement. Proceeds will be used for general corporate purposes and to refinance the $1.75 series 2007-1 deal as well as pay fees and taxes associated with it.
Fitch has assigned its top expected rating of AAAsf to both series with a stable outlook, citing low leverage in the transaction and “exceptionally strong tenant collateral, portfolio, sponsorship and transaction attributes.”
Seller representations and warranties will be “from an investment-grade-rated entity,” according to Fitch.
Notes in the deal are backed by mortgages representing more than 86% of the annualized run rate net cash flow and are guaranteed by the direct corporate parent of the borrowers.
Guarantees are secured by a pledge and first-priority-perfected security interest in 100% of the equity interests of the borrowers as well as their corporate parent, American Tower Corp., which more than 54,000 towers across the United States and in several other countries.