KBRA Assigns Ratings to ALLO Issuer, LLC, Series 2024-1 Senior Secured Notes and Takes Other Rating Actions
19 Jul 2024 | New York
KBRA is assigns ratings to the Series 2024-1 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2024-1 Notes) and affirms each of the five outstanding ratings from the Series 2023-1 transaction (the Existing Notes and, together with the Series 2024-1 Notes, the Notes) from ALLO Issuer, LLC, (the Issuer), a communications infrastructure securitization.
ALLO 2024-1 represents ALLO Issuer, LLC’s (the Issuer) second securitization following the initial Series 2023-1 Notes. 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 from the sale of the Notes are being used to pay down the outstanding balance of the Series 2023-1 A-1-V Notes, fund certain reserve accounts including a prefunding account, transaction fees, and for general corporate purposes, which may include capital expenditures.
The business of the Issuer is to own, manage, and operate fiber optic communication systems infrastructure for the delivery of communication services to customers including, but not limited to, broadband, telephone, video solutions, as well as other revenue-generating services. Customers include individual residential consumers (representing approximately 69% of customer lines as of April 2024) and businesses comprising commercial and governmental organizations (together representing approximately 31% of customer lines) that utilize fiber infrastructure encompassing geographic locales. The assets consist of fiber-to-the-premise (FTTP) infrastructure, customer agreements, related easements, rights of use and other access agreements (collectively, Fiber Network Assets). Each collection of networks and their assets are collectively referred to as “Fiber Networks” within certain geographic locales (Contributed Markets).
As of April 30, 2024 (the Cut-off Date), the Issuer provides internet services within the Contributed Markets to approximately 118,000 residential and commercial subscribers across Nebraska and a portion of Colorado, which have an annualized run rate revenue (ARRR) of approximately $157 million. Within the Contributed Markets, data, video, and voice represented approximately 71.4%, 17.8% and 9.9% of revenues, respectively as of the Cut-off Date.
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