Fidium, a fiber internet and network services company, announced the closing of a $664.6 million asset-backed securitization, marking its third such transaction in less than a year as it continues to expand its fiber network footprint.
The financing consists of three classes of asset-backed term notes secured by the company’s existing and future fiber-enabled customers, as well as its fiber optic and network infrastructure. The issuance includes $501.2 million of 5.1% Class A-2 notes, $77.4 million of 5.4% Class B notes, and $86.0 million of 7.0% Class C notes, all with an anticipated repayment date of March 2031. The combined weighted average coupon is approximately 5.4%.
This latest transaction follows two prior securitizations completed in 2025 totaling more than $2.6 billion, underscoring Fidium’s continued access to capital markets and efforts to optimize its long-term financing strategy.
Proceeds from the offering will be used to repay existing debt, including outstanding borrowings under a revolving warehouse facility, and to support general corporate purposes such as network expansion and growth initiatives.
Morgan Stanley served as sole structuring agent and lead left active bookrunner on the transaction. Additional bookrunners included Goldman Sachs, Guggenheim Securities, Jefferies, J.P. Morgan, RBC Capital Markets, Santander US Capital Markets, Scotia Capital, UBS Investment Bank, and Wells Fargo Securities. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP for Fidium and King & Spalding LLP for the initial purchasers.
Fidium currently operates in more than 700 communities, delivering fiber connectivity to residential, business, and institutional customers across the United States as it continues to scale its network infrastructure.
KEY QUOTE:
“We are pleased to execute on our latest securitization transaction, which marks the lowest rates that we’ve achieved in the ABS market to date and reflects the Company’s continued growth and valuable fiber infrastructure. We look forward to further expanding Fidium’s fiber presence across our service territory with the support of our favorable, long-term capital structure.”
Fred Graffam, Chief Financial Officer of Fidium
