KBRA Assigns Ratings to Ziply Fiber Issuer, LLC, Series 2024-1 and Series 2024-2 Senior Secured Notes
3 Apr 2024 | New York
KBRA is assigning ratings to the Series 2024-2 Class A-1 Notes, and the Series 2024-1 Class A-2 Notes, Class B Notes, and Class C Notes (together, the Series 2024-1 and Series 2024-2 Notes) from Ziply Fiber Issuer, LLC, (the Issuer), a communications infrastructure securitization.
The Series 2024-1 and Series 2024-2 Notes are anticipated to be issued by Ziply Fiber Issuer, LLC (the Issuer) and represent Northwest Fiber, LLC (doing business as Ziply Fiber)’s (Ziply, the Company, or the Parent) first securitizations. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes. The proceeds from the sale of the Notes will primarily be used to pay certain expenses of issuance, to fund the Liquidity Reserve Account, to repay existing indebtedness, and to be used for general corporate purposes.
The business of the Issuer is to own, manage and operate fiber optic infrastructure for the delivery of services to customers including, but not limited to, data services, IP-delivered voice services, as well as other revenue-generating services. The assets will consist primarily of fiber-to-the-premise (FTTP) infrastructure, certain headend, colocation, and other facilities and equipment that transmit broadband-based services, the middle mile fiber networks delivering certain content and data from the headend and other facilities to the fiber networks, related easements, rights of use and other access agreements (collectively, Fiber Network Assets).
As of January 31, 2024 (the Series 2024-1 and Series 2024-2 Cut-off Date, or the Cut-off Date), the Issuer provides internet services to approximately 271,000 residential and small-medium business fiber subscribers across over 1.9 million locations throughout four U.S. states, which have an aggregate annualized run rate revenue (ARRR) for the quarter ending November 30, 2023 of approximately $192.3 million.
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