Consolidated Communications Closes Inaugural $1.344 Billion Asset Backed Securitization and $1.5 Billion Revolving Warehouse Facility
Financing supports and accelerates Fidium’s growth plan and vision to become America’s favorite fiber provider
Consolidated Communications Holdings, LLC (the “Company” or “Consolidated”) today announced the closing of its inaugural fiber securitization transaction (the “Transaction”) consisting of asset-backed term notes (the “Notes”) totaling $1.344 billion, secured by all existing and future fiber-enabled customers across certain states and the fiber optic and network infrastructure to support these customers. Concurrently with the offering of the Notes, the Company also entered into a commitment for a $500 million variable funding note facility, subject to leverage tests and other customary drawing conditions. Additionally, an affiliate of the Company entered into a $1.5 billion secured, revolving warehouse facility, subject to leverage tests and other customary drawing conditions.
The Notes were issued in three classes consisting of $1.001 billion 6.0% Series 2025-1, Class A-2 notes, $152.8 million 6.5% Series 2025-1, Class B notes, and $189.7 million 9.4% Series 2025-1, Class C notes, each with an anticipated repayment date of May 2030. Collectively, the Notes have a weighted average coupon of approximately 6.5%.
“We are pleased to complete our inaugural asset backed securitization, which reflects the strong value of our fiber infrastructure and growing penetration across our footprint,” commented Fred Graffam, chief financial officer at Consolidated. “With favorable, long-term financing in place, we’ll continue to disrupt the market with our best-in-class fiber product, Fidium, while continuing to expand our fiber network.”
“I am more confident than ever in our future as a fiber-first Company,” commented Bob Udell, chief executive officer at Consolidated. “Having completed our go-private with Searchlight Capital Partners and British Columbia Investment Management Corporation at the end of 2024 and through this financing, we have solidified the future growth of Fidium and remain focused on unlocking new opportunities, fueling innovation, and empowering our teams to deliver on our vision to become America’s favorite fiber provider.”
The proceeds of the Transaction will be used to, among other things, repay existing indebtedness, and for general corporate purposes, including the Company’s growth initiatives and expansion of its fiber network.