KBRA Assigns Preliminary Ratings to TierPoint Series 2024-1
April 25 2024 - 11:18AM
Business Wire
KBRA assigns ratings to the Series 2024-1 Class B Notes
(TierPoint 2024-1) issued by TierPoint Issuer, LLC and TierPoint
Co-Issuer, LLC (the Co-Issuers), a data center ABS transaction. In
addition to the issuance of the Series 2024-1, Class B Notes, the
Series 2023-2, Class A-2 Notes will be upsized from $475 million to
$900 million.
TierPoint 2024-1 represents the third series of notes issued by
TierPoint Issuer, LLC and TierPoint Co-Issuer, LLC. All series
share in the same collateral pool. No additional collateral will be
added in connection with the issuance of TierPoint 2024-1. KBRA’s
rating analysis incorporates all prior debt issuance of the
Co-Issuers. KBRA anticipates affirming the ratings of the Series
2023-1/2 Notes with the issuance of TierPoint 2024-1.
TierPoint, LLC serves as the manager for the trust. The Notes
are secured by 31 data centers generating approximately $407.7
million of Total Annualized Monthly Recurring Revenue (AMRR) and
approximately $206.3 million of Annualized Adjusted Net Operating
Income (AANOI) as of December 2023 (the Statistical Disclosure
Date). This includes fee simple ownership interests in nine
multi-customer enterprise data centers (37.7% of AANOI) located in
eight markets and leasehold interests in 22 multi-customer
enterprise data centers (62.3% of AANOI) located in 19 markets. The
31 data centers are comprised of approximately 703,893 square feet
(sf) of data center space and can provide approximately 64.6
megawatts (MW) of critical load power to customers.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- CMBS: U.S. CMBS Property Evaluation Methodology
- CMBS: U.S. CMBS Single Borrower & Large Loan Rating
Methodology
- Structured Finance: 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.
Doc ID: 1004033
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425973784/en/
Analytical
Alan Greenblatt, Managing Director (Lead Analyst) +1
646-731-2496 alan.greenblatt@kbra.com
Fred Perreten, Managing Director +1 646-731-2454
fred.perreten@kbra.com
Preston Boutwell, Associate +1 646-731-2367
preston.boutwell@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com