Kirkland Advises Surf Internet on $407 Million Inaugural Fiber ABS

Kirkland & Ellis advised Surf Internet on the closing of a $407 million fiber asset-backed securitization (ABS) that strengthens the company’s long-term capital structure and supports continued network expansion across the Great Lakes region. This transaction marks Surf’s inaugural ABS and reflects strong institutional investor demand for its growing subscriber base and network assets. The financing was executed through a newly formed, limited-purpose, bankruptcy-remote, wholly owned subsidiary, Surf ABS Issuer LLC. It consists of a $332 million offering of secured fiber network revenue term notes and a $75 million variable funding note facility.

Term notes were issued in multiple classes, including Class A-2 Notes rated A-, Class B Notes rated BBB, and Class C Notes, which were not rated and structured at a higher leverage point relative to precedent consumer-backed fiber-to-the-home ABS transactions. The deal was tightly priced compared to relevant sector peers with strong interest from asset managers, insurance accounts and credit funds.

Read the transaction press release

The Kirkland team included structured finance lawyers Kelly Mellecker and John Harrison.