Vertical Bridge Pockets Millions From Note Offering


Wednesday was a big deposit day for Boca Raton, Fla.-based broadcast tower owner Vertical Bridge.

The privately held company successfully issued $236 million of secured tower revenue notes in an offering led by Barclays and Deutsche Bank.

It marks the third successful securitization in two years by Vertical Bridge.

The company previously closed on two private asset-backed securitization transactions in June 2016 and in October 2016. The current revenue notes will rank pari passu by tranche with Vertical Bridge’s June 2016 revenue notes. The issuance is secured by over 2,500 sites, including almost 1,100 added to the trust in conjunction with this issuance.

Vertical Bridge also announced Wednesday (2/21) that it has paid off its existing Senior Credit Facility and entered into a new $250 million Senior Credit Facility with TD Securities as lead arranger and book runner.

“As our clients and partners prepare for 5G and navigate a fast-changing communications landscape, we continue to grow our reach and capabilities to support their needs,” said company co-founder and CEO Alex Gellman. “This securitization has a strong credit profile with long term, contracted revenue and a diversified portfolio that speaks to the quality of our assets and the benefits we can offer tenants.”

The senior notes, which were sold at par, are comprised of three tranches:

  • a $185 million tranche, rated A by Fitch and Kroll
  • a $13 million tranche, rated BBB by Fitch and Kroll
  • a $38 milliontranche, rated BB- by Fitch and BB by Kroll

The securities have a five-year anticipated repayment date with a 30-year final maturity and carry a blended fixed interest rate of 3.778%. They are secured by mortgages on certain tower sites, first priority perfected security interest in the towers and tenant leases associated with the mortgaged sites, first priority perfected security interest in the personal property associated with all sites, and a pledge of the equity interest of each asset entity and issuer.

The $250 million Senior Credit Facility has a five-year term, maturing in February of 2023 and is secured by mortgages on certain tower sites and a security interest in the towers and related leases.

Vertical Bridge owns, operates and manages over 61,000 tower, rooftop, billboard, utility attachment and other site locations in support of wireless network deployments.

Vertical Bridge’s activity with broadcast TV and radio station owners will be the subject of the lead story in the RBR+TVBR 2018 NAB Show Special Edition — distributed in print at the Las Vegas Convention Center during the show and via PDF to all RBR+TVBR Members.