KBRA Assigns Ratings to Hotwire Funding LLC, Series 2024-1 and Takes Other Actions
31 May 2024 | New York
KBRA assigns ratings to the Series 2024-1 Class A-2 Notes, Class B Notes, and Class C Notes (together, the Series 2024-1 Notes) from Hotwire Funding, LLC, (the Issuer), a communications infrastructure securitization.
Hotwire 2024-1 represents Hotwire Communications, Ltd.’s (Hotwire, the Company or the Parent) third securitization from its master trust, of which approximately $2.2 billion is currently outstanding, assuming the Class A-1-V variable funding notes are fully drawn. The outstanding prior Series 2021-1 Notes and Series 2023-1 Notes, and Series 2024-1 Notes (altogether, the Notes) share in the same collateral pool. KBRA re-analyzed the outstanding Series 2021-1 Notes and Series 2023-1 Notes in conjunction with the issuance of the Series 2024-1 Notes, and affirms all of the outstanding ratings as of the Series 2024-1 closing date.
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 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 May 1, 2024, (the Series 2024-1 Cut-off Date or Cut-off Date), the Issuer provides internet and cable services through 934 networks, which have an aggregate Annualized Run Rate Revenue of approximately $346.7 million and an Annualized Run Rate Net Operating Income of approximately $225.2 million.
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