NEW YORK–(BUSINESS WIRE)–KBRA is assigning preliminary ratings to the Series 2023-1 Class A-1 Notes, Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2023-1 Notes) from Adams Outdoor Advertising Limited Partnership, (the Issuer), an asset-backed securitization that is primarily collateralized by billboards and revenue generated from the related contracts.
The Series 2023-1 Notes represent AOA Management Company Limited Partnership’s (AOA’s, the Company’s, or the Manager’s) sixth securitization. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes subject to certain conditions including rating agency confirmation. The proceeds of the Series 2023-1 Notes, net of expenses and initial sub-account deposits, will be used to fully pay down the outstanding Series 2018-1 and Series 2021-1 Notes, fund a distribution to equity owners of the Issuer’s indirect parent companies, and for general corporate purposes. KBRA anticipates withdrawing the ratings on the Issuer’s existing Series 2018-1 and Series 2021-1 Notes at closing of this transaction and following evidence that those notes have been paid in full.
The Issuer is one of the largest outdoor advertising companies in the U.S. by number of posters/bulletin faces. The Issuer currently provides outdoor advertising services in twelve markets and their surrounding areas in the Midwest, Southeast, and Mid-Atlantic states. As of March 31, 2023, the Issuer operated, in the aggregate, approximately 9,917 advertising displays, including approximately 3,700 bulletins, 5,849 posters, 342 digital displays and 26 other display types. The portfolio’s net outdoor advertising revenues and eligible net cash flow were approximately $144.0 million and $82.9 million, respectively as of March 31, 2023.
The collateral includes Billboard Assets (outdoor displays used to advertise products and services) and permits and contracts, related collections, and transaction accounts. The Billboard Assets include, but are not limited to all billboards, transit displays, mall displays, parking garage displays, production services, online services, customer contracts, electronic displays for billboards and any leasehold interest in such electronic displays for billboards owned by the Issuer, permits, licenses, contracts, ground leases, real property, insurance proceeds, and structures as well as any amounts on deposit in the liquidated billboard asset sub-account.
Insider’s Take: Not often that we can get a look under the hood at Adams Outdoor.
- 9,917 advertising displays,
- including approximately 3,700 bulletins,
- 5,849 posters,
- 342 digital displays
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