Fidium says it has closed its third fiber-backed asset back securitization (ABS) transaction and that it raised $664.6 million.
The American Bar Association defines securitization as “pooling illiquid financial assets — such as mortgages, auto loans, or credit card debt — and converting them into tradable securities sold to investors.”
The Fidium ABS transaction is secured by revenue from existing and future fiber-enabled customers and the fiber and network infrastructure supporting them.
The notes will be used to repay current indebtedness, including under the outstanding revolving warehouse facility, and for growth initiatives, expansion of its fiber network and related purposes.
The notes consist of $501.2 million 5.1% Series 2026-1, Class A-2 notes, $77.4 million 5.4% Series 2026-1, Class B notes, and $86.0 million 7.0% Series 2026-1, Class C notes. They all have an anticipated repayment date of March 2031. The notes in this ABS transaction have a weighted average coupon of approximately 5.4%, according to the Fidium press release.
“We are pleased to execute on our latest securitization transaction, which marks the lowest rates that we’ve achieved in the ABS market to date and reflects the company’s continued growth and valuable fiber infrastructure,” Fidium chief financial officer Fred Graffam said. “We look forward to further expanding Fidium’s fiber presence across our service territory with the support of our favorable, long-term capital structure.”
Fidium issued ASB-backed term notes of $1.344 billion in May 2025 and $1.283 billion in December 2025.
Gaurav Juneja, who recently became the company’s President and Chief Executive Officer, told Telecompetitor late last year that likes the ABS approach. He said Fidium’s goal under his leadership is to continue growing at the rate that it had been for the previous three years, during which he said its fiber business had grown 35% to 40% annually.
