Surf Internet Secures $407 Million in Inaugural Fiber ABS Funding

Surf Internet® announced the successful closing of a $407 million fiber asset-backed securitization (ABS) on March 4, 2026, bolstering its financial foundation and supporting the continued expansion of its fiber-optic network across the Great Lakes region. This transaction represents Surf’s first venture into the ABS market and demonstrates strong investor confidence in the company’s growth trajectory and asset base.

Transaction Details

The financing was structured through Surf ABS Issuer LLC, a newly formed, limited-purpose entity designed to be bankruptcy-remote. The ABS consists of $332 million in secured fiber network revenue term notes and a $75 million variable funding note facility.

The term notes were issued in multiple classes, catering to diverse investor risk profiles:

• Class A-2 Notes: Rated A-
• Class B Notes: Rated BBB
• Class C Notes: Not rated, structured with higher leverage.

The deal was favorably priced compared to similar transactions in the sector, attracting significant interest from asset managers, insurance companies, and credit funds. Business Wire reported strong oversubscription levels, exceeding the transaction size multiple times.

Strategic Implications

This ABS transaction is a pivotal moment for Surf Internet, providing the company with enhanced financial flexibility to accelerate its fiber deployment plans. The funds will be used to expand the network, increase multigigabit capabilities, and extend connectivity to underserved communities in Illinois, Indiana, and Michigan. Surf Internet previously secured $175 million in equity funding in February 2025, led by Macquarie Capital, with participation from Bain Capital and Post Road Group, and an upsized $300 million debt facility.

Legal Counsel

Kirkland & Ellis LLP served as legal counsel to Surf Internet throughout the ABS transaction. Kirkland & Ellis also advised Bain Capital Credit on its acquisition of a majority stake in Surf Broadband Solutions in 2021.

Executive Commentary

“This inaugural ABS transaction represents an important milestone in Surf’s continued evolution as a scaled and disciplined super-regional fiber platform,” stated Ryan Delack, Chief Financial Officer of Surf Internet. “Our 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.”