"The transaction includes only fiber network assets and associated revenues. The ABS includes only the most mature portions of Surf's fiber footprint. ABS provides financing secured by only a portion of a company's total assets. Deals are typically secured with fiber assets and associated revenues. These are considered low-risk revenues, so lenders generally are willing to offer favorable terms for the borrower."
"The ABS financing in the Surf Internet deal comes in the form of a $332 million offering of secured fiber network revenue term notes and a $75 million variable funding note facility. Goldman Sachs was the sole structuring agent and placement agent."
"The company's strong operating performance and consistent subscriber growth have enabled us to access the capital markets in a way that enhances our financial flexibility and supports long-term value creation. A key goal is to accelerate network expansion."
Surf Internet obtained $407 million in asset-backed securitization (ABS) financing secured by fiber network assets and associated revenues. The deal comprises a $332 million offering of secured fiber network revenue term notes and a $75 million variable funding note facility, with Goldman Sachs serving as structuring and placement agent. The ABS includes only the most mature portions of Surf's fiber footprint in Illinois, Indiana, and Michigan. ABS financing is relatively new among broadband providers and considered low-risk because it is secured by fiber assets and associated revenues, enabling lenders to offer favorable terms. Surf Internet has completed 250,000 fiber passings and secured government funding for deployment costs. The company aims to use this financing to accelerate network expansion and enhance financial flexibility.
#asset-backed-securitization #fiber-network-financing #broadband-infrastructure #capital-markets #network-expansion
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