KBRA Assigns Preliminary Ratings to Adams Outdoor Advertising Limited Partnership, Series 2023-1 Senior Secured Notes

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.

To access ratings and relevant documents, click here.

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Related Publications

• Adams Outdoor Advertising LP Secured Billboard Revenue Notes, Series 2018-1 and Series 2021-1 Surveillance Report
• General Global Rating Methodology for Asset-Backed Securities
• US CMBS Property Evaluation Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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