EX-99.1 2 d875822dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

KPMG LLP

Suite 770

20 Pacifica

Irvine, CA 92618-3391

Independent Accountants’ Agreed-Upon Procedures Report

Netrality Properties, LP (the “Company”)

Guggenheim Securities, LLC (the “Structuring Agent”)

(together, the “Specified Parties”)

 

Re:

Netrality ABS Issuer LLC – Secured Data Center Revenue Term Notes, Series 2024-1 – Data File Procedures

We have performed the procedures described below on the specified attributes in the Data File (defined below) containing information on 5,829 Service Orders (defined below), which we were informed are intended to be included as collateral in the offering of Netrality ABS Issuer LLC – Secured Data Center Revenue Term Notes, Series 2024-1. The Company is responsible for the specified attributes identified by the Company in the Data File.

The Specified Parties have agreed to and acknowledged that the procedures performed are appropriate to meet their intended purpose of assisting specified parties in evaluating the accuracy of the specified attributes in the Data File. This report may not be suitable for any other purpose. No other parties have agreed to or acknowledged the appropriateness of these procedures for the intended purpose or any other purpose.

The procedures performed may not address all the items of interest to a specified party of this report and may not meet the needs of all specified parties of this report and, as such, specified parties are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the appropriateness of the procedures either for the intended purpose or for any other purpose.

Unless otherwise stated, the following definitions have been adopted in presenting our procedures and findings:

 

  •  

The term “compared” means compared to the information shown and found it to be in agreement, unless otherwise stated. Such compared information was deemed to be in agreement if differences were within the reporting threshold.

 

  •  

The term “recomputed” means recalculated and compared the result to the information shown and found it to be in agreement, unless otherwise stated. Such recomputed information was deemed to be in agreement if differences were within the reporting threshold.

 

  •  

The term “reporting threshold” means that dollar amounts, percentages, and number of days were within $1.00, 0.1%, and 30 days, respectively.

 

  •  

The term “Statistical Calculation Date” means June 30, 2024.

 

  •  

The term “Data File” means an electronic data file entitled “Netrality 2024-1 Data Tape - KPMG_9.23.24.xlsx” provided by the Structuring Agent on September 23, 2024, on behalf of the Company, containing information on 5,829 data center service order agreements (the “Service Orders”) as of the Statistical Calculation Date.

 

 

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International limited, a private English company limited by guarantee.

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  •  

The term “Service Order Information” means the following documents provided by the Structuring Agent, on behalf of the Company, related to the Selected Service Orders (defined below): (i) scanned Service Order agreement, (ii) scanned amended and/or restated Service Order agreements, (iii) scanned Master Service Agreements, and (iv) Company’s system charge history. We make no representation regarding the validity or accuracy of the Servicer Order Information.

 

  •  

The term “Support Information Files” means an electronic data file and an email message provided by the Structuring Agent, on behalf of the Company, containing information on attributes #6 through #11, #13, and #14 listed in Exhibit B:

 

  –

“_EXTERNAL_ RE_ Net 2024-1 - Initial Exceptions List.msg” provided on September 17, 2024.

 

  –

“NET 2024-1 Initial Exceptions 9.25.24 - 4.xlsx” provided on October 4, 2024,

 

  •  

The term “Source Documents” means the Service Order Information and Support Information Files.

 

  •  

The term “Instructions” means the instructions provided by the Company pertaining to a procedure, attribute, or methodology, as described in Exhibit C.

 

  •  

The term “Provided Information” means the Source Documents and Instructions.

The procedures we were instructed by the Company to perform and the associated findings are as follows:

 

A.

We randomly selected a sample of 100 Service Orders from the Data File using the following methodologies:

 

  (i)

Select one (1) Service Order for each of the top 25 customers ranked by total annualized revenue in the Data File (the “Top Tenant Sample”); and,

 

  (ii)

Select 75 Service Orders from the remaining customers (the “Regular Tenant Sample”).

The Top Tenant Sample and the Regular Tenant Sample together constitute the “Selected Service Orders.” A listing of the Selected Service Orders is attached hereto as Exhibit A. For purposes of this procedure, the Company did not inform us of the basis they used to determine the number of Service Orders we were instructed to randomly select from the Data File.

 

B.

For each Selected Service Order, we compared or recomputed the specified attributes in the Data File listed in Exhibit B to or using the corresponding information included in the Source Documents, utilizing the Instructions, as applicable. The Specified Parties indicated that the absence of any of the information in the Source Documents or the inability to agree the indicated information from the Data File to the Source Documents for each of the attributes identified, utilizing the Instructions as applicable, constituted an exception.

We found such information to be in agreement except as listed in Exhibit D.

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants, which involves us performing the specific procedures agreed to and acknowledged above and reporting on findings based on performing those procedures. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the specified attributes in the Data File. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.

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We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

The procedures performed were applied based on the information included in the Data File and Provided Information, without verification or evaluation of such information by us; therefore, we express no opinion or any other form of assurance regarding (i) the reasonableness of the information provided to us by the Company, (ii) the physical existence of the Service Orders, (iii) the reliability or accuracy of the Provided Information which was used in our procedures, or (iv) matters of legal interpretation.

The procedures performed were not intended to address, nor did they address: (i) the conformity of the origination of the Service Order to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) the value of collateral securing any such Servicer Orders being securitized, (iii) the compliance of the originator of the Service Orders with federal, state, and local laws and regulations, or (iv) any other factor or characteristic of the Service Orders that would be material to the likelihood that the issuer of the asset-backed securities will pay interest and principal in accordance with applicable terms and conditions. The procedures performed were not intended to satisfy any criteria for due diligence published by the nationally recognized statistical rating organizations (“NRSROs”).

The terms of our engagement are such that we have no responsibility to update this report because of events and circumstances that may subsequently occur.

This report is intended solely for the information and use of the Specified Parties. It is not intended to be and should not be used by any other person or entity, including investors or the NRSROs, who are not identified in the report as the Specified Parties but may have access to this report as required by law or regulation.

/s/ KPMG LLP

Irvine, California

October 18, 2024

Exhibit A – Selected Service Orders

 

Selected Service
Order #

   

Service Order
Identifier1

     

Top Tenant?

     

Selected Service

Order #

     

Service Order
Identifier1

     

Top Tenant?

 1

    N2401001      yes      51      N2401051      no

 2

    N2401002      yes      52      N2401052      no

 3

    N2401003      yes      53      N2401053      no

 4

    N2401004      yes      54      N2401054      no

 5

    N2401005      yes      55      N2401055      no

 6

    N2401006      yes      56      N2401056      no

 7

    N2401007      yes      57      N2401057      no

 8

    N2401008      yes      58      N2401058      no

 9

    N2401009      yes      59      N2401059      no

10

    N2401010      yes      60      N2401060      no

11

    N2401011      yes      61      N2401061      no

12

    N2401012      yes      62      N2401062      no

13

    N2401013      yes      63      N2401063      no

14

    N2401014      yes      64      N2401064      no

15

    N2401015      yes      65      N2401065      no

16

    N2401016      yes      66      N2401066      no

17

    N2401017      yes      67      N2401067      no

18

    N2401018      yes      68      N2401068      no

19

    N2401019      yes      69      N2401069      no

20

    N2401020      yes      70      N2401070      no

21

    N2401021      yes      71      N2401071      no

22

    N2401022      yes      72      N2401072      no

23

    N2401023      yes      73      N2401073      no

24

    N2401024      yes      74      N2401074      no

25

    N2401025      yes      75      N2401075      no

26

    N2401026      no      76      N2401076      no

27

    N2401027      no      77      N2401077      no

28

    N2401028      no      78      N2401078      no

29

    N2401029      no      79      N2401079      no

30

    N2401030      no      80      N2401080      no

31

    N2401031      no      81      N2401081      no

32

    N2401032      no      82      N2401082      no

33

    N2401033      no      83      N2401083      no

34

    N2401034      no      84      N2401084      no

35

    N2401035      no      85      N2401085      no

36

    N2401036      no      86      N2401086      no

37

    N2401037      no      87      N2401087      no

38

    N2401038      no      88      N2401088      no

39

    N2401039      no      89      N2401089      no

40

    N2401040      no      90      N2401090      no

41

    N2401041      no      91      N2401091      no

42

    N2401042      no      92      N2401092      no

43

    N2401043      no      93      N2401093      no

44

    N2401044      no      94      N2401094      no

45

    N2401045      no      95      N2401095      no

46

    N2401046      no      96      N2401096      no

47

    N2401047      no      97      N2401097      no

48

    N2401048      no      98      N2401098      no

49

    N2401049      no      99      N2401099      no

50

    N2401050      no      100      N2401100      no

 

1 

The Company has assigned a unique identifier to each Service Order in the Data File. The Service Order Identifier listed in Exhibit A are not the unique identifiers assigned by the Company.

Exhibit B – Attributes and Source Documents

 

 # 

   

Common Attribute Name

     

Attribute Name in Data File

     

Source Documents/Instructions (see Exhibit C)

1    Unique Identifier      LEASID concatenated with ACCT      n/a (information purpose only)
2    Customer Name      OCCNAME      Service Order Information
3    Market      Market      Service Order Information
4    Site      Site      Service Order Information
5    Product Type      FSLI      Instructions
6    Customer Since Date      Tenure Start (Clean)      Service Order Information and Support Information Files
7    Renewal Options Remaining      RTERM_N      Service Order Information, Support Information Files, and Instructions
8    Renewal Period Terms (in months)      RTERM_MTHS      Service Order Information, Support Information Files, and Instructions
9    Start Date      Rent Start Date (Clean)      Service Order Information and Support Information Files
10    End Date      Rent End Date (Clean)      Service Order Information and Support Information Files
11    Contract Original Term (in months)      Contract Term (Clean)      Support Information Files and Instructions
12    Contract Remaining Term (in months)      Remaining Term –Months (Clean)      Instructions
13    Month to Month      MTM      Support Information Files
14    Current Billing Rate ($ per sqft)      AMOUNT      Service Order Information and Support Information Files
15    Ultimate Parent of Customer      Parent      Instructions
16    Product Type      DESCRPTN      Service Order Information

Exhibit C – Instructions

 

 # 

   

Common Attribute Name

   

Instructions

5    Product Type    Compare to the FSLI Mapping provided in tab “Account_Map” in the Data File.
7    Renewal Options Remaining    For any Service Order with a “Y” in the Month to Month (“MTM”) attribute, Renewal Options Remaining equals 1.
8    Renewal Period Terms    For any Service Order with a “Y” in the MTM attribute, Renewal Period Terms equals 1.
11    Contract Original Term   

Recompute using the formula below:

 

Contract Original Term = DATEDIF(Start Date - DAY(Start Date) + 1, End Date, “m”) + 1

12    Contract Remaining Term   

For any Service Order with a “Y” in the MTM attribute, the Contract Remaining Term equals 1.

 

For all other Service Orders, recompute using the formula below:

 

Contract Remaining Term =ROUNDUP(DAYS360(Statistical Calculation Date, End Date) / 30, 0)

15    Ultimate Parent of Customer    Compare to the Parent Mapping provided in tab “Parent_Map” in the Data File.

Exhibit D – Exceptions

 

Selected Service

Order #

     

Common Attribute Name

     

Per Data File

     

Per Source
Documents/Instructions

20      Renewal Period Terms (in months)      1      120
21      Renewal Options Remaining      0      2
21      Renewal Period Terms (in months)      0      60
22      Renewal Period Terms (in months)      12      60
67      Renewal Period Terms (in months)      1      12
68      Customer Since Date      TBD      10/31/2023
69      Customer Since Date      TBD      3/29/2024
89      Renewal Period Terms (in months)      36      48
100      Customer Since Date      TBD      4/1/2024