Vertical Bridge Achieves Landmark $1.94 Billion Tower Revenue Note Issuance

Introduction

In a landmark achievement for the telecommunications infrastructure sector, Vertical Bridge REIT, LLC, the largest private owner and operator of wireless communications infrastructure in the United States, has successfully issued $1.94 billion in tower revenue notes. This monumental offering is supported by a diverse portfolio of 10,425 tower sites strategically located throughout all 50 states, Puerto Rico, and Washington D.C.

Historical Context

This issuance marks a significant milestone not only for Vertical Bridge but also for the entire telecommunications sector, as it stands as the largest asset-backed securities (ABS) transaction in the company’s history and the highest ABS issuance ever recorded in the tower industry. Vertical Bridge has been progressively expanding its financing capabilities since 2016, and this latest venture is a testament to its growing influence and the trust investors place in its operations.

Investor Confidence

The recent ABS offering attracted an impressive response, with a total of 78 unique investors participating across four classes of notes. Notably, 41 of these were new investors, indicating a robust interest in Vertical Bridge’s platform and a robust endorsement of its business model. According to Ron Bizick, President and CEO of Vertical Bridge, the “strength, stability, and continued growth of Vertical Bridge’s platform” were crucial factors behind the success of this issuance.

Key Features of the Issuance

This ABS issuance not only hit historical highs but also introduced a first-of-its-kind Single-B rated tranche in tower ABS history. This innovative step signifies the company’s ongoing commitment to adapting and evolving within the competitive telecommunication market.

Role of Barclays

The structuring of this significant transaction was led by Barclays, whose expertise played a pivotal role in the successful execution of the offering. CFO Tom Guard expressed appreciation for Barclays’ leadership and expressed confidence in the deal, stating that it reinforces the market’s trust in Vertical Bridge’s business model. This collaboration with Barclays further emphasizes the company's strategic positioning within the telecommunications infrastructure sector.

Vertical Bridge’s Operations

Vertical Bridge currently boasts a nationwide portfolio of over 18,000 towers, providing essential build-to-suit and colocation solutions for the telecommunications industry. The company is committed to being at the forefront of meeting the escalating demand for wireless connectivity, which continues to rise as advancements in technology evolve and the need for robust communication networks surges.

Commitment to Sustainability

In a world increasingly focused on sustainability, Vertical Bridge is proud to highlight its achievements towards environmental responsibility. In 2020, it became the first tower company globally to obtain CarbonNeutral® certification. The company has maintained this certification every year since, signaling its dedication to reducing carbon emissions and promoting sustainable practices within the telecommunications industry.

Conclusion

Vertical Bridge’s recent $1.94 billion ABS offering is a significant milestone that positions the company for continued growth and success in the telecommunications infrastructure landscape. As demand for wireless connectivity escalates, companies like Vertical Bridge are poised to play a crucial role in shaping the future of communication. Investors’ strong confidence in Vertical Bridge’s business model reflects the company’s ability to adapt to market changes and maintain its leadership in the industry. For those seeking insights into the telecommunications sector, Vertical Bridge’s accomplishments serve as a noteworthy case study of innovation and resilience in today’s fast-paced business environment.

For more information, visit Vertical Bridge's official website.