Revenue from fiber communication infrastructure networks will secure $325 million in asset-backed bonds coming to market through the Uniti Fiber ABS Issuer and Uniti Fiber TRS programs, series 2025-2.
Uniti Fiber will issue notes through a structure of five tranches of class A, B, C and R notes, according to Kroll Bond Rating Agency.
All the notes have a final maturity date of January 2056, KBRA said although the tranches have a couple of anticipated repayment dates. The class A1 notes, which pay a variable rate, are expected to repay investors by January 2029, while the rest of the notes in the capital structure should be paid off by January 2031, the rating agency said.
After senior fees, the structure repays interest quarterly on all outstanding classes of notes, KBRA said.
The structure includes cash trap and sweep conditions. If the debt service coverage ration (DSCR) on the senior notes is less than 1.70x or the leverage ratio, that will trigger a cash trap that directs 50% of available funds to the cash trap reserve account.
Uniti Fiber also benefits from a subordination plan where each junior class of notes is subordinated for payments to its senior class. Also, principal on the class C notes is subordinated to principal payments on the class A and class B notes should there be a rapid amortization period.
The transaction's assets include fiber networks, plus their related assets and infrastructure, related rights agreements with the relevant parties, plus related service orders, service agreements and customer agreements, KBRA said. Since Uniti Fiber is a master trust, the program can issue additional notes, if certain conditions are met.
KBRA assigns ratings of A, A, BBB and BB- to tranches A1, A2, B and C, respectively, and expects to affirm the outstanding ratings on the series 2025-1 notes.
Uniti Fiber Holdings is the deal's manager, while KeyBank is on the deal as servicer, KBRA said.
As of the deal's cutoff date, July 31, 2025, Uniti Fiber's collateral included 26,803 circuit connections across six states, to customers like telecom carriers, large- and medium-sized enterprises across various industries, government entities, data center operators and hyperscale cloud providers. Those connections take in monthly revenue of about $15.1 million as of the cutoff date.
