Kirkland Advises Zentro on Inaugural $240 Million Bulk MDU ABS

Kirkland & Ellis advised Zentro Internet, one of the largest independent multi-dwelling unit (MDU) focused bulk Internet Service Providers in the United States, on the close of its inaugural Asset-Backed Securitization (ABS) financing. The company is backed by M|C Partners. The transaction, which received investment grade private credit ratings from a leading rating agency, was oversubscribed and attracted strong interest from asset managers, insurance companies, and credit funds. At a $240 million issuance size, it is the largest ABS in the bulk MDU broadband sector to date. The transaction included issuance of solely investment-grade Class A-2 and Class B notes, which were issued to a group of leading institutional investors at a fixed rate. Proceeds from the transaction will strengthen the company’s long-term capital structure and provide additional capital resources to support both continued organic network expansion across the United States as well as strategic acquisitions. This financing transaction lowers the company’s overall cost of capital and greatly expands its access to this substantial pool of long-term and lower cost funding.

Read the transaction press release

The Kirkland team included structured finance lawyers Kelly Mellecker, Tad Bardenwerper, Wilson Carneiro, Anne Li and Omar Haddad; tax lawyers Ben Schreiner, Richard Husseini, David Wheat and Jon Nelsen; investment funds regulatory lawyer Felix Jen; investment funds ERISA lawyers Joe Lifsics and Christine Matott; and employee benefits lawyer Jack Bernstein.