Zentro Internet, a U.S.-based internet service provider focused on multifamily communities, announced it has closed its inaugural $240 million asset-backed securitization financing, marking the largest ABS issuance in the multifamily broadband sector to date.
The transaction received investment-grade private credit ratings and was oversubscribed, attracting strong demand from asset managers, insurance companies, and credit funds. The financing consisted of investment-grade Class A-2 and Class B notes issued at a fixed rate to institutional investors.
Proceeds from the issuance will be used to strengthen Zentro’s long-term capital structure, expand access to lower-cost funding, and support continued network expansion and strategic acquisitions across the United States. The company said the transaction will also reduce its overall cost of capital and enhance scalability as it grows its platform.
Zentro, which delivers multi-gig internet services across 20 major metro markets, is backed by private equity firm M|C Partners. The financing process involved Houlihan Lokey as sole structuring and placement agent, with legal counsel provided by Kirkland & Ellis LLP for Zentro and King & Spalding LLP for investors. Altman Solon will serve as backup manager.
Founded in 2009, Zentro has positioned itself as one of the largest independent providers of internet services tailored for multifamily properties in the U.S., focusing on high-speed, symmetrical connectivity solutions.
KEY QUOTES:
“This ABS improves our cost structure and unlocks greater scalability. Its success reinforces our strategy of investing in the latest technology and building lasting partnerships with our clients. As a market leader focused on multifamily connectivity solutions, we will use this momentum to continue scaling our platform.”
Doug Gilstrap, CEO of Zentro Internet
“This financing marks another milestone in the growth of Zentro, and we are very proud of the team and its ability to navigate this process. We remain extremely excited about the opportunity and growth we see in the MDU market and Zentro’s role in the space.”
Ryan Carr, Partner at M|C Partners and Zentro Board Member
