KBRA Assigns Ratings to Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, Series 2025-1 Senior Secured Notes
3 Feb 2025 | New York
KBRA is assigning ratings to the Series 2025-1 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-1 Notes) from Uniti Fiber ABS Issuer LLC (the Lead Issuer) and Uniti Fiber TRS Issuer LLC (the Co-Issuer), a communications infrastructure securitization.
The Series 2025-1 Notes represent Uniti Fiber Holdings Inc.’s (the Company or the Manager) first securitization. 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 repay the Company’s outstanding indebtedness and pay related costs.
The business of the Issuers will be to own, manage and operate fiber optic cable communications systems for the delivery of dark and lit fiber infrastructure and transport services, including but not limited to mobile infrastructure including fiber-to-the-tower (FTTT) and small cell backhaul, enterprise internet and data center connectivity, as well as type two access. The assets include fiber networks (and related assets and infrastructure); the related rights agreement entered into with the relevant property owner or other parties, utilities municipalities or jurisdictional authorities for the locations where the fiber and related infrastructure are placed; and each related service order, statement of work, service agreement and customer agreement, as well as related receivables.
As of September 30, 2024 (the Cut-Off Date), the collateral included 19,580 circuit connections across four states, and had aggregated Monthly Recurring Charges (MRC) of approximately $10.7 million. The largest customers are telecommunications carriers, large and medium enterprises in diverse industries, government entities, data center operators and hyperscale cloud providers. The three largest contributors to MRC are nationally scaled telecommunications operators and High Quality Credit Worthy Tenants representing approximately 36.0% of MRC. The weighted average remaining tenant lease term based on MRC is approximately 3.8 years without renewals.
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