Fidium has completed its second fiber securitization, closing on approximately $1.283 billion in asset-backed term notes supported by the company’s fiber customers and network assets across several states. The financing builds on the company’s May 2025 issuance of $1.344 billion in asset-backed notes. It represents another substantial step in expanding its long-term capital strategy as demand for high-speed fiber connectivity continues to grow.
The new notes were issued in three classes totaling $977.8 million at 5.5 percent for the Series 2025-4 Class A-2 tranche, $144.5 million at 5.8 percent for the Class B tranche, and $160.6 million at 8.1 percent for the Class C tranche. All three carry an anticipated repayment date of December 2030 and, together, reflect a weighted-average coupon of approximately 5.9 percent.
The company plans to use proceeds to reduce existing indebtedness, including repayment of a portion of its revolving warehouse facility, while also supporting general corporate purposes, growth initiatives, and further expansion of its fiber network. The transaction strengthens the company’s financial flexibility as it continues to build out its footprint and scale operations in pursuit of becoming a preferred high-speed fiber provider in the United States.
Morgan Stanley served as the sole structuring agent and lead left active bookrunner, with additional bookrunners including Goldman Sachs, Guggenheim Securities, Jefferies, J.P. Morgan, RBC Capital Markets, Santander US Capital Markets, Scotia Capital, UBS, and Wells Fargo Securities. Paul, Weiss served as counsel to Fidium, while King & Spalding represented the initial purchasers.
KEY QUOTES:
“We are pleased to build on the success of our inaugural asset backed securitization financing earlier this year through this most recent transaction, which underscores the favorable trajectory of our business and the strong, growing value of our fiber infrastructure.”
“With an attractive, long-term capital structure in place, we are well-positioned to continue executing on our growth plan and the expansion of Fidium to communities across our service territory.”
Fred Graffam, Chief Financial Officer, Fidium
