Consolidated Communications has obtained $1.34 billion via asset-backed securitization (ABS) to bolster its finances. This recent transaction includes a $500 million variable funding note facility and a $1.5 billion revolving warehouse facility aimed at financing growth initiatives and expanding its fiber network. ABS financing offers favorable terms, as it is based on the company's low-risk fiber asset revenues. This trend is gaining traction among telecom companies, with others like Frontier and Zayo also pursuing similar financing strategies.
Consolidated Communications has successfully secured $1.34 billion in asset-backed term notes and an additional $500 million in funding through a secured facility, bolstering its finances.
The ABS deal enables Consolidated to finance growth initiatives and expand its fiber network while leveraging low-risk revenue streams associated with its fiber assets.
Asset-backed securitization allows telecom companies to obtain favorable funding terms, demonstrating its emerging importance in financing strategies for the sector.
Other telecom players like Frontier, Ting, and Zayo have previously utilized ABS financing, reflecting a trend within the industry towards this financing method.
Collection
[
|
...
]