NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of secured billboard revenue notes, Series 2018-1 (the “Notes”) issued by Adams Outdoor Advertising Limited Partnership (LP).
The Secured Billboard Revenue Notes, Series 2018-1 Class A Notes, the Series 2018-1 Class B Notes and the Series 2018-1 Class C Notes (together, the “Series 2018-1 Notes” or the “Notes”) anticipated to be issued by Adams Outdoor Advertising Limited Partnership (the “Issuer”) represents the Issuer’s fourth securitization. AOA Management Company Limited Partnership (“AOA”, the “Manager” or the “Company”) is an indirect owner of the Issuer and will administer collections and otherwise manage the Billboard Assets on behalf of the Issuer. The Issuer is a master trust and, as such, the indenture permits the issuance of additional classes and series of notes.
The Notes are primarily secured by substantially all Billboard Assets owned by the Issuer. As of August 31, 2018, the Issuer operated, in the aggregate, approximately 9,789 advertising displays, including approximately 3,432 bulletins, 6,048 posters, 265 digital displays and 44 other displays. The portfolio’s net outdoor advertising revenues and eligible net cash flow as of August 31, 2018 was approximately $124.9 million and $66.8 million, respectively.
The transaction will benefit from sufficient credit support, an interest reserve account and other structural features including scheduled amortization to the noteholders and DSCR triggers that divert additional cash to pay the notes upon the weakening of collateral performance. These structural features are further described in the Adams Outdoor Advertising LP, Secured Billboard Revenue Notes, Series 2018-1 Pre-Sale Report.
KBRA analyzed the transaction using both KBRA’s Global General Rating Methodology for Asset Backed Securities published on November 28.2017 and KBRA’s U.S. CMBS Property Evaluation Methodology published on August 3, 2017.
| Series and Class* | Preliminary Rating | Principal Balance (USD) | |||||||||||
| Series 2018-1, Class A | A (sf) | $395,800,000 | |||||||||||
| Series 2018-1, Class B | BBB (sf) | $35,000,000 | |||||||||||
| Series 2018-1, Class C | BB (sf) | $74,200,000 | |||||||||||
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
- Global General Rating Methodology for Asset Backed Securities
- U.S. CMBS Property Evaluation Methodology
- Adams Outdoor Advertising LP, Secured Billboard Revenue Notes, Series 2018-1 Pre-Sale Report
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
