Surf Internet has completed a $407 million asset-backed securitization (ABS) through a bankruptcy-remote subsidiary, Surf ABS Issuer LLC, marking its first securitized financing and backing fiber-network expansion across the Great Lakes region.
The deal comprises $332 million in term notes secured by fiber network revenue and a $75 million variable funding note facility. The term notes were issued in multiple classes, including investment-grade Class A-2 notes rated A-, BBB-rated Class B notes, and unrated Class C notes placed at higher leverage relative to typical consumer fiber ABS. Demand was strong, with investors oversubscribing.
Surf CFO Ryan Delack called the ABS transaction a milestone in the company’s evolution as a larger, disciplined regional fiber platform, designed to improve financial flexibility and support long-term value creation. Surf said proceeds will be used to accelerate network builds and invest in service reliability and customer experience.
Buyers and advisers described the deal as a vote of confidence in Surf’s assets. Bain Capital’s David Haswell noted the assets’ quality and demand for Surf’s services, while Goldman Sachs served as sole structuring and placement agent. Legal work was handled by Kirkland & Ellis for Surf and by Ropes & Gray for investors and the placement agent.
Surf Internet, headquartered in Elkhart, operates as a regional fiber provider serving Illinois, Indiana and Michigan with more than 350 employees. The financing aligns with a broader shift among regional fiber operators to tap public capital markets to fund large-scale builds as demand for high-speed broadband increases.
