Ezee Fiber, a fiber network operator and another recent issuer new to the asset-backed securities market, is bringing a $880 million offering to investors secured by monthly recurring revenue from customer connection contracts.
By the April 30, 2026 cutoff date, the collateral pool was generating $12 million in monthly recurring revenue from 130,000 customer connections through several Ezee Fiber entities, including Ezee Fiber New Mexico, Texas and Washington, according to Kroll Bond Rating Agency.
The transaction will repay senior fees, principal and interest on the A1 class before repaying monthly interest on all remaining outstanding classes of notes, according to the Kroll Bond Rating Agency.
Ezee Fiber Funding 2026-1 is organized under a master trust structure and will be able to issue additional classes of notes if the assets meet certain conditions. Should the senior debt service coverage ratio (DSCR) be less than 1.75x, then half of the transaction's available funds will be deposited int the cash trap reserve account.
If the three-month average leverage ratio exceeds the trigger ANOI Leverage Ratio, KBRA said, then 100% of available funds will be used to repay all classes of notes in sequential order, KBRA said.
The structure also includes an amortization trigger. If on any payment date, before the anticipated repayment date, Ezee Fiber's three-month average senior debt service coverage ratio (DSCR) falls below 1.50x, then classes A1 and A2 will begin to be paid down, shutting out the class C notes until they are fully repaid, KBRA said. This creates a potential deferral of interest to the class C notes, KBRA said.
KBRA assigns A- ratings to classes A1L, A1V and A2, and BBB and BB- to classes B and C.
